HomeMy WebLinkAboutNYS Comptroller Info - Town Officials 2024Information for
Town Officials
January 2024
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January 2024
Dear Friends:
The Office of the State Comptroller is committed to helping local
governments serve their residents well. Our Division of Local
Government & School Accountability operates out of regional
offices in Binghamton, Buffalo, Glens Falls, Hauppauge, Newburgh,
Rochester and Syracuse, as well as our Albany headquarters,
conducting audits, offering technical assistance, providing training,
and publishing reports and guidance on a range of pertinent topics.
We appreciate the challenges you face as you strive to meet the needs of your constituents in the
most economical and practical ways possible. The 2024 edition of Information for Town Officials
has been designed as a resource to help you understand and carry out the varied responsibilities
of your office. Our experienced and dedicated professional staff stands ready to assist you with any
questions or issues that may arise.
I applaud your dedication to public service, and I look forward to working with you to ensure that our
town governments are responsive, cost-effective, transparent and accountable.
Thomas P. DiNapoli
State Comptroller
A Message from the Comptroller
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January 2024
Dear Town Official:
It is our pleasure to provide you with the 2024 edition of Information for Town Officials published by
the Division of Local Government and School Accountability in the Office of the State Comptroller.
This guide was prepared to help you comply with the various duties and responsibilities of your
office and to help you understand and strengthen your town’s finances.
As you are aware, towns are responsible for a variety of important services including roadways,
public safety, sanitation and recreation. They also administer services in thousands of special districts
throughout the State. Taxpayers expect all of these services to be delivered effectively and efficiently.
Managing all your town’s functions may seem daunting, especially to those of you who are newly
elected. Our office welcomes the opportunity to work with you to help you fulfill your responsibilities.
In addition to this guide, the Division offers many other resources and publications, including a
series of Local Government Management Guides, Accounting and Reporting Manuals and Research
Reports. We also provide technical assistance, offer frequent training opportunities and can issue legal
opinions when needed. Please visit our website at https://www.osc.ny.gov/local-government to find
more information on these resources. If I can be of further assistance, please feel free to reach out to
me at (518) 474-4037 or localgov@osc.ny.gov.
Robin L. Lois
Deputy Comptroller
Division of Local Government and School Accountability
A Message from the Division of Local
Government and School Accountability
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Chapter 1 - Town Classes, Officers, and Districts 7
Classification of Towns .......................................................................................................................................7
Suburban Towns ..........................................................................................................................................8
Town Board ........................................................................................................................................................8
Meetings ......................................................................................................................................................9
Town Officers ...................................................................................................................................................10
Supervisor ..................................................................................................................................................11
Deputy Supervisor .....................................................................................................................................11
Town Clerk .................................................................................................................................................11
Town Justice ..............................................................................................................................................12
Superintendent of Highways ......................................................................................................................12
Assessor ....................................................................................................................................................12
Board of Assessment .................................................................................................................................12
Collecting Real Property Taxes .................................................................................................................12
Town Director of Purchasing ......................................................................................................................13
Town Attorney ............................................................................................................................................13
Town Comptroller .......................................................................................................................................13
Other Offices .............................................................................................................................................13
Boards and Special Districts ............................................................................................................................14
Fire Districts and Fire Protection Districts ........................................................................................................14
Joint Fire Districts ......................................................................................................................................14
Chapter 2 - Fiscal Responsibilities and Requirements 15
Supervisor as Fiscal Officer .............................................................................................................................15
Transition Into Office ..................................................................................................................................17
Accounting Records .........................................................................................................................................18
Safeguarding Records ...............................................................................................................................19
Funds..... ...........................................................................................................................................................19
Town Funds and Account Groups ..............................................................................................................23
Revenues and Investments ..............................................................................................................................23
Types of Revenues and Sources ...............................................................................................................23
Investment of Idle Funds ............................................................................................................................23
Ingredients of an Investment Program .......................................................................................................23
Program Procedures ..................................................................................................................................23
Types of Investments .................................................................................................................................25
Table of Contents
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Disbursement Procedures ................................................................................................................................26
Paying Claims ............................................................................................................................................26
Appropriation Control .......................................................................................................................................26
Separate Appropriation Accounts ..............................................................................................................26
Amending the Budget ................................................................................................................................27
Unrestricted Fund Balance and Unanticipated Revenues .........................................................................27
Transfers ....................................................................................................................................................28
Appropriations for Contingencies ..............................................................................................................28
Budget Notes .............................................................................................................................................28
Appropriation Accounting ..........................................................................................................................28
Payrolls ............................................................................................................................................................28
Preparation ................................................................................................................................................29
Determining Proper Rate of Compensation ...............................................................................................29
Approval of Payrolls ...................................................................................................................................29
Civil Service Certification ..........................................................................................................................30
Types of Payroll Deductions ......................................................................................................................30
Disbursing Payroll Amounts .......................................................................................................................30
Employee Earnings Record .......................................................................................................................30
Allocation of Town Share of Payroll Taxes and Other Employee Benefit Expenditures ............................30
Bank Accounts .................................................................................................................................................31
Deposits .....................................................................................................................................................31
Bank Reconciliation ...................................................................................................................................32
Sample Bank Reconciliation ......................................................................................................................32
Interfund Advances ....................................................................................................................................33
Service Charge for Dishonored Checks ....................................................................................................33
Financial Reports .............................................................................................................................................33
Reports of the Town Supervisor ................................................................................................................33
Monthly Statement to the Town Board .......................................................................................................33
Financial Reporting ....................................................................................................................................33
Annual Financial Report to the State Comptroller .....................................................................................33
Background .........................................................................................................................................34
Annual Financial Reporting Application ..............................................................................................35
Real Property Tax Cap Filings with the State Comptroller. ............................................................………..35
Annual Report of Receipts and Disbursements .........................................................................................35
Access to Financial Reports via Internet Website .....................................................................................36
Reporting Duties of the Town Comptroller .................................................................................................36
Reports to the Supervisor ..........................................................................................................................36
Fiscal Stress Monitoring System ...............................................................................................................36
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Chapter 3 - Budgets and Finances 37
Fiscal Year ........................................................................................................................................................37
Definitions .........................................................................................................................................................37
Budgeting .........................................................................................................................................................37
Estimates ...................................................................................................................................................38
Tentative Budget ........................................................................................................................................38
Preliminary Budget ....................................................................................................................................38
Exemption Report ......................................................................................................................................39
Part-Town Activities ...................................................................................................................................39
Accounting for Sales and Use Tax Distributions from the County .............................................................40
Fire District Budgets ..................................................................................................................................40
Interest Charges Against Districts .............................................................................................................41
Public Hearing............................................................................................................................................41
Final Revision and Adoption of Budget ......................................................................................................41
Tax Levy .....................................................................................................................................................42
Supplemental Appropriations ....................................................................................................................42
Transfers ....................................................................................................................................................42
Transfer of Appropriations .........................................................................................................................42
Encumbering Appropriations .....................................................................................................................43
Lapse of Appropriations .............................................................................................................................43
Compensation of Officers and Employees ................................................................................................43
Budget Calendar ........................................................................................................................................43
Questions and Answers .............................................................................................................................44
Accounting ........................................................................................................................................................48
Duties of the Supervisor ............................................................................................................................48
Town Comptroller as Accounting Officer ...................................................................................................48
Claims and Payments .......................................................................................................................................49
Form of Claims ...........................................................................................................................................49
Audit of Claims by the Auditing Authority ...................................................................................................49
Payments Not Requiring Pre-Audit ............................................................................................................51
Payments Allowed Prior to Audit ................................................................................................................51
Town Charges ............................................................................................................................................51
Prohibited Expenditures .............................................................................................................................52
Advertising for Bids ....................................................................................................................................52
Payrolls ......................................................................................................................................................52
Judgments .................................................................................................................................................52
Annual Accounting by Town Officers and Employees .....................................................................................52
Responses to Municipal Audit Reports ............................................................................................................53
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Chapter 4 – Services and Publications Provided by
OSC’s Division of Local Government and School Accountability 54
Audits................................................................................................................................................................54
Research ..........................................................................................................................................................57
Town Budget Reviews ......................................................................................................................................57
Local Official Training .......................................................................................................................................57
Technical Assistance and Communications .....................................................................................................58
Financial Data ..................................................................................................................................................59
Justice Court Fund ...........................................................................................................................................59
Annual Financial Reporting Application ...........................................................................................................60
Industrial Development Agency (IDA) Annual Reporting .................................................................................60
Publications Available from the Division of Local Government and School Accountability .............................60
Accounting .................................................................................................................................................60
Local Government Management Guide .....................................................................................................61
Management Topics by Position ................................................................................................................64
Cost-Savings Ideas ....................................................................................................................................64
Local Government Data .............................................................................................................................65
Research Reports ......................................................................................................................................65
Chapter 5 - Exhibits 67
Exhibit A – Payroll Journal ...............................................................................................................................68
Exhibit B – Payroll Distribution Form ................................................................................................................69
Exhibit C – Employee Earnings Record ...........................................................................................................70
Exhibit D – Projected Cash Flow Statement ....................................................................................................71
Exhibit E – Record of Investments ...................................................................................................................72
Exhibit F – List of Unpaid Obligations ..............................................................................................................73
Exhibit G – Claim Voucher ...............................................................................................................................74
Exhibit H – Abstract ..........................................................................................................................................76
Contacts 77
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Every New Yorker lives either in a city or a town. Some towns have within their boundaries one
or more villages. Although a village is a separate municipal corporation, many town services are
provided for the entire area of the town, including the village. Residents look to these governments
for local services such as public safety, roadways, health, recreation and utilities.
In New York State, there are hundreds of towns organized to provide government for those
residents living outside the borders of cities. At one time, city governments were found in urban
areas and town governments in rural areas. This is no longer entirely accurate. Clustered around
our large- and medium-sized cities are heavily populated communities that are not a part of a city,
but are integral parts of the towns in which they are located. Thus, there are urban towns as well as
rural towns. Some towns provide a wide range of municipal services while others provide just a few.
Populations range from hundreds of thousands in the largest towns in New York to fewer than 100
in the smallest.
Classification of Towns (Town Law, Section 10)
There are two classes of towns in New York State – first and second.
Towns of the first class include:
• All those in Westchester County
• Town of Ulster, Ulster County
• Those elsewhere having a population of 10,000 or more, except: towns in Broome and Suffolk
counties; and the Town of Potsdam, St. Lawrence County.
Towns of the second class include:
• All those in Broome and Suffolk Counties
• Town of Potsdam, St. Lawrence County
• Those with fewer than 10,000, except for towns in Westchester County and all suburban towns.
A town of the second class, except those towns provided above, becomes a town of the first
class automatically upon a census disclosure that the town has a population of 10,000 or more
(Town Law, Section 11[1]). In addition, any one of three special sets of circumstances makes it
possible, either by action of the town board (subject to permissive referendum requirements) or by a
proposition at the polls, to convert a town of the second class (except for the Town of Potsdam) into
a town of the first class (Town Law, Section 12). These circumstances are:
• A population of 5,000 or more
• An assessed value of taxable real property in excess of $10 million
Chapter 1 - Town Classes, Officers and Districts
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• The fact that the town adjoins a city of 300,000 or more people.
The distinction between the two types of towns grew out of differences in the problems that had
confronted urban and rural areas. More services may be required in towns in more populated
areas. The government may need to be more complex and its structure will reflect the demands
made upon it.
Today, however, as various statutory provisions have changed and all towns have home rule powers,
there is little difference, in practice, between the powers and duties of the two classes of towns.
Suburban Towns
A town may become a suburban town if it has a population of 25,000 or more, or, in certain cases,
has a population of 7,500 or more and is located within 15 miles of a city with a population of at
least 100,000. A suburban town has certain additional powers that are designed to help it provide
needed services. For example, the supervisor may appoint a director of finance to perform some of
the fiscal duties (Town Law, Section 52). Also, the town board may create departments and appoint
individuals to head those departments.
A public hearing must be held if a town decides to become a suburban town. After the hearing, a
resolution of the town board, subject to permissive referendum requirements, is all that is necessary
for the town to become a suburban town. The resolution must provide that the town will become a
town of the first class, if it is not one already (Town Law, Section 50-a). For additional information,
see Article 3-A of the Town Law.
Town Board
The legislative authority of the town rests in the town board, which is the governing board of the town.
The town board, among other functions, generally fills vacancies in town offices, elective or appointive;
may select a town attorney and a town engineer; appoints constables or police officers; and provides
for the hiring of other employees as necessary for the conduct of the town’s business (Town Law,
Sections 20 and 64). Certain highway employees are hired by the highway superintendent, but within
appropriations authorized by the town board (Highway Law, Section 140[4]).
The town board adopts a budget, fixes the salaries of officers and employees, establishes rules
of board procedure and designates the official newspaper of the town. Other functions are so
numerous that only a sample can be given here. The town board may provide for the construction
of drainage flood control facilities; provide for towers to be built, at the request of the Department
of Environmental Conservation, to watch for forest fires; buy and install traffic control equipment;
provide for feeding deer; provide for certain public health services; establish a publicity fund;
regulate certain dangerous conditions; sponsor band concerts; compromise or settle claims; call
special town elections; license certain occupations; provide for town improvements; establish fire,
fire alarm and fire protection districts; create improvement districts; and designate depositories for
town moneys. The general powers of the town board are set forth primarily in Section 64 and other
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sections of the Town Law.
Most of the functions of the town board are set forth in the Town Law. However, some functions
are set forth in other statutes such as the General Municipal Law, the Highway Law, the Education
Law, the Agriculture and Markets Law, and the Not-for-Profit Corporation Law. In addition, town
boards may adopt local laws pursuant to the home rule powers granted by Article 9 of the State
Constitution and the Municipal Home Rule Law.
Meetings
Certain budget and organizational meetings are required by law (Town Law, Sections 62, 106 and
109). In towns of the first class, the law provides that at least one meeting be held each month; we
recommend this for all towns. With limited exceptions, the meetings must be held within the town
at a location specified by resolution of the town board. In a town of the second class, there is no
specific statutory requirement for the number of town board meetings that must be held. However,
the law does provide for certain meetings and hearings, such as the hearing on the preliminary
budget, an annual accounting day and others (Town Law, Sections 106 and 123). Beyond these
requirements, a town board is generally free to establish, by resolution, a time, date and place for
regular meetings (Town Law, Section 62; Public Officers Law, Article 7).
Occasionally there will be a need for a special meeting. The supervisor may call a special meeting,
and must give at least two days notice in writing to members of the board as to the place and time of
the meeting. When two members of the board other than the supervisor request a special meeting
in writing, the supervisor must, within 10 days of the request, call a special meeting, giving at least
two days notice in writing. The supervisor has no option in this matter (Town Law, Section 62).
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Town Officers
Town officers for first class and second class towns are listed on the following page. Note that a
Town Board comprises the Supervisor and members of the Town Council.
First Class Second Class
Supervisor (a)Supervisor (a)
4 Council Members (b)4 Council Members (b)
Town Attorney (c)Town Attorney (c)
Town Clerk Town Clerk
Town Superintendent of Highways (d)Town Superintendent of Highways (d)
2 Town Justices (e) 2 Town Justices (e)
1 Assessor (c)1 Assessor (c) (f)
Receiver of Taxes and Assessments Tax Collector (g)
Town Engineer (c)Town Engineer (c)
Police Officers (c)Police Officers or Constables (c)
Director of Purchasing (c)Director of Purchasing (c)
Comptroller (c)Comptroller (c) (h)
(a) The town supervisor serves as budget officer unless he/she appoints someone else (Town Law,
Section 103[2]).
(b) A town may have fewer than four council members under certain circumstances. (Town Law, Sections
20[1][a],[b], 60-a, and 81[2][c]). In a first class town, the number of council members may be increased to
six, subject to permissive referendum requirements (Town Law, Section 81[2][a]).
(c) This office is generally appointive.
(d) A town with an elective highway superintendent may abolish the office of highway superintendent by
local law, subject to permissive referendum requirements, if the town has a contract in force and effect
with another municipality for the municipality to provide highway, road and street maintenance and repair
for a period of at least five years (Town Law, Section 20[1][k]).
(e) A town board may determine by resolution, subject to permissive referendum requirements, that the
number of town justices shall be reduced (Town Law, Section 60-a). A town containing a population
in excess of 50,000 may, subject to referendum, create the office of a third town justice. Those with
a population of more than 75,000 may establish the offices of a third and/or fourth justice, subject to
referendum (Town Law, Section 20[1][d]).
(f) This may be an elected position. There may be up to three assessors in a second class town that has
exercised an option contained in former Section 1556 of the Real Property Tax Law (Town Law Section
20[1][b], Town Law Section 20[1][f]).
(g) In a second class town, the town board may adopt a resolution abolishing the office of tax collector. If
the board adopts the resolution, the duties of the tax collector will be performed by the town clerk (Town
Law, Section 36).
(h) In a second class town, this position may exist only if the population is over 40,000 (Town Law, Section
20[3][b]).
Note: Not all the listed offices are mandatory and additional offices may exist in individual towns.
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Supervisor
The town supervisor fills a significant role, serving in several major capacities, including:
• Presiding Officer (Chairperson) – The supervisor is the presiding officer at meetings of the
town board (Town Law, Section 63).
• Town Legislator (Town Board Member) – The supervisor votes on matters before the town
board as do all the other board members (Town Law, Sections 60 and 63).
• Town Executive and Administrator – After town board decisions have been made, it is the
supervisor who often carries out the decisions. The supervisor usually receives the majority of
complaints and suggestions of citizens, as well.
• Town Fiscal Officer – The supervisor is the treasurer of the town and generally represents the
town in the conduct of its financial affairs. Chapter 2 of this publication discusses many aspects
of this very important role (Town Law, Section 29).
• Representative of the Town (County Board Member) – The office of supervisor may
be a county as well as a town post. Depending on the type of county government, a town
supervisor may serve on the county board as a representative of the town. There are two
basic types of organizational structures for counties: a separately elected legislature or a board
of supervisors. For a county with a board of supervisors, the supervisors elected from the
several cities and towns in the county constitute the board (County Law, Section 150). These
supervisors may serve on county board committees and receive compensation as members of
the county board of supervisors (County Law, Section 200).
Deputy Supervisor
A town board may decide to establish the office of deputy supervisor. If it does, that official is
appointed by the supervisor, or by the town board if the supervisor fails to do so within five days
after the establishment of the office or within five days after a vacancy occurs in the office. Any
person, including a town officer, official or employee, may be appointed deputy supervisor, provided
that the person appointed shall possess the same qualifications as an elective town officer. The
town board fixes the compensation paid to the deputy supervisor. If a town officer, official or
employee is appointed deputy supervisor, that person may receive extra pay. The deputy supervisor
does not sit on the county board and has no vote on the town board unless the deputy is also a
town board member and entitled to a vote by virtue of that office (Town Law, Section 42).
Town Clerk
The town clerk is also clerk of the town board but has no vote. The clerk is in charge of most town
records, issues certain licenses and permits, files reports with county and State agencies as
required, is involved with election administration, posts legal notices, and is, in many ways, a pivot
around which the town operates (Town Law, Section 30).
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Town Justice
Town justices have jurisdiction in criminal and civil matters, and in special proceedings as conferred
by law (Town Law, Section 31; Uniform Justice Court Act). The Office of the State Comptroller
(OSC) provides a separate publication for Town Justices entitled Handbook for Town and Village
Justices and Court Clerks. The handbook, which provides guidance on the reporting and handling
of fines, is available online at https://www.osc.ny.gov/files/local-government/publications/pdf/justice-
court-fund-handbook.pdf.
Superintendent of Highways
The town superintendent of highways is primarily responsible for the maintenance and repair of
town highways and bridges, and the removal of obstructions caused by brush and snow. The
Superintendent generally has the power to hire, subject to appropriations established by the town
board, and direct highway department employees for the above-mentioned purposes. The salary
and expenses of the superintendent and the deputy superintendent (if any), and certain other
administrative expenses are paid from the general fund. Other highway expenses are generally paid
from the highway fund (Highway Law, Section 141; Town Law, Section 32).
Assessor
The assessor or board of assessors is charged with the responsibility of assessing real property in
the town for purposes of taxation (Town Law Section 33, Real Property Tax Law Section 102[3], see
generally, Real Property Tax Law Article 5, Title 1).
Board of Assessment
A board of assessment review hears complaints of property owners on grievance day and may
make adjustments to assessments. The board of assessment review consists of at least three but
not more than five members appointed by the town board. The majority of the members cannot be
officers and employees of the town. The town assessor may not serve as a board of assessment
review member (Real Property Tax Law, Sections 102[3], [4], and 523).
Collecting Real Property Taxes
The responsibility for collecting town, county and special district taxes may be performed by either
a tax collector or a receiver of taxes and assessments, depending on a town’s classification and
structure. The taxes collected are to be turned over to the proper agencies. School taxes are
ordinarily levied separately, using a duplicate copy of the assessment roll provided for the school
board. A receiver in a town of the first class generally collects school taxes unless there has been
an agreement with the school board to the contrary.
The Town Law spells out the general powers and duties of town officials responsible for collecting
taxes (Town Law, Sections 35, 36, and 37). In towns of the second class, the office of tax collector
or receiver may be abolished by a resolution of the town board. If these offices are abolished, the
duties of tax collection must then be performed by the town clerk.
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Town Director of Purchasing
Any town, by resolution, may establish the office of director of purchasing. Centralizing the
purchasing function in the office of director of purchasing can promote sound purchasing practices
by concentrating knowledge of purchasing laws, practices and market conditions in one official. In
addition, creation of this position segregates the purchasing function from other components of the
purchasing process, such as the receiving and audit functions, thereby improving internal control
(Town Law, Sections 20[3][e], and 41-b).
Town Attorney
Any town may establish the office of town attorney, appoint an individual to serve in that position
and fix the salary for that position. The individual serving as town attorney is a town officer. Towns
that have established the office and appointed a town attorney may also contract with other
attorneys or law firms to provide assistance to the town attorney for specific purposes. Towns that
have not established the office of town attorney may contract with an outside attorney or law firm to
provide professional services and legal advice (Town Law, Section 20[2]).
Town Comptroller
The town board of any town of the first class, or any town of the second class with a population
over 40,000 according to the latest federal census or State enumeration, may adopt a resolution
establishing the office of town comptroller and appoint an individual to serve in that position (Town
Law, Section 20[3][b]). Generally, when a comptroller has been appointed, that individual takes over
certain duties that otherwise would be the responsibility of the town board and town clerk. These
duties include auditing, allowing or rejecting claims; preparing abstracts; and filing claims and other
related functions. The duties of a town comptroller also include auditing the books and records of
town officers and employees who received or disbursed moneys during the fiscal year (Town Law,
Section 34). The town board may also take action to confer certain other duties upon the town
comptroller, such as being the accounting officer for the town.
Other Offices
There are numerous other appointive town offices, including engineer, constable, police officer and
dog control officer.
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Boards and Special Districts
Population density, public health and safety concerns, community needs or other circumstances
may call for special services to be provided in only certain parts of a town. Town Law authorizes the
creation of special districts or improvement areas to provide certain improvements and services to
certain parts of a town. Numerous types of special districts may be created to provide services such
as water, sewer, drainage, park, ambulance, public parking, lighting, sidewalk, snow removal, refuse
and garbage.
The approval of the State Comptroller is generally required if the cost of the establishment or
extension of a special district will be financed by debt and the cost of the district or extension to the
“typical property” is above the average estimated cost threshold annually computed by the State
Comptroller for similar types of districts. The State Comptroller must determine whether the public
interest will be served by the establishment or extension of the district and whether the costs will be
an undue burden upon the properties benefited.
The affairs of special districts are generally governed by the town board, but in some instances
may be handled by a separately elected board of commissioners. Special districts are funded by
assessments upon the property owners who benefit from the services, as well as by user charges
(see Town Law, Articles 12, 12-A, 13, and 15).
Fire Districts and Fire Protection Districts
Fighting and preventing the hazards of fire is a public safety concern in every town. Generally,
there are two types of districts that may be established for this purpose: a fire district or a fire
protection district (see Town Law, Article 11). A fire district is a political subdivision of the State for
most purposes: a separate governmental entity with an elected board of fire commissioners and
other appropriate officials. The board of fire commissioners prepares the annual fire district budget,
determines the amount of real property taxes to be levied, and manages the affairs of the district
(Town Law, Section 181).
In general, a fire protection district is an area of a town for which the town board enters into a contract
for fire protection with another municipality, a fire district, or a fire company. The town board levies the
taxes in an amount sufficient to pay the consideration under the contract (Town Law, Section 184).
Joint Fire Districts
The governing boards of towns and villages are authorized to establish joint fire districts by
resolution, after a public hearing and subject to permissive referendum requirements. Article 11-A of
the Town Law provides uniform procedures for extending, financing and operating joint fire districts.
These procedures apply to existing districts formed under the provisions of Chapter 595, Laws of
1938, as well as new districts. The provisions of Article 11 of the Town Law, as they relate to the
operation of fire districts, are applicable to joint fire districts, to the extent not inconsistent with the
provisions of Article 11-A.
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Chapter 2 - Fiscal Responsibilities and Requirements
Supervisor as Fiscal Officer
One of the most important duties of the town supervisor is that of fiscal officer. The supervisor’s
significant fiscal functions and responsibilities include:
1. Acting as the treasurer and collecting, receiving and having custody of all moneys belonging to
or due the town (Town Law, Section 29[1]). Exceptions in which another official is responsible
for town moneys include a public general hospital that has a separate treasurer (General
Municipal Law, Sections 126, 126-a, and 128), an improvement district that has a separate
treasurer (Town Law, Article 13) and a fire district (Town Law, Article 11).
2. Acting as treasurer and having custody of all moneys received from taxes or other public
sources for a town public library, and expending library moneys only under the direction of
the library trustees on properly authenticated vouchers (Education Law, Section 259[1]).
Exception: library trustees may designate a separate library treasurer to be custodian of
moneys given or bequeathed to the library and moneys received from taxes and other public
sources (Education Law, Section 259[1]).
3. Depositing and securing, within 10 days after receipt, all moneys in the official town bank
account in the manner prescribed by General Municipal Law, Section 10 (Town Law, Section
29[2]). However, we recommend daily deposits if material amounts have been received.
4. Temporarily investing idle town moneys, when authorized by the town board, in the manner
prescribed by the board in accordance with the town’s investment policy (General Municipal
Law, Sections 11 and 39).
5. Paying moneys on warrant of the town clerk or the town comptroller after audit and allowance
of claims by the town board or town comptroller (Town Law, Section 125[1]). Exceptions
include payment of fixed salaries, principal and interest on indebtedness, regular or stated
compensation of officers and employees, and amounts becoming due upon lawful contracts
exceeding one year (Town Law, Sections 29[7], and 125[1]). The supervisor may make
payments in advance of audit for public utility services, postage, freight and express charges if
authorized by the town board (Town Law, Section 118[2]). See Disbursement Procedures later
in this chapter for more information on audit and approval of claims.
6. Disbursing moneys only by check (Town Law, Section 29[3]). Exceptions include petty cash
payments (Town Law, Section 64[1-a]) and electronic or wire transfers (General Municipal
Law, Section 5-a).
7. Keeping an accurate and complete account of all moneys received and disbursed in
accordance with the accounting system prescribed by the State Comptroller, and filing the
records with the town clerk upon expiration of the term of office (Town Law, Section 29[4]).
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*8. Keeping a separate account for every appropriation, allowing no appropriation account to be
overdrawn at any time, and allowing no fund or appropriation account to be drawn upon to pay
a claim chargeable to another (Town Law, Section 125[1]).
*9. Encumbering appropriation accounts at the close of the fiscal year from lists of unpaid
obligations filed by heads of administrative units, as well as encumbering appropriation
accounts during the year if required by the town board (Town Law, Section 110).
*10. Providing to the town board, at the end of each month, a detailed statement of all moneys
received and disbursed during the month, as well as filing a copy with the town clerk (Town
Law, Section 125[2]). Other types of financial reports, such as comparisons of budget
estimates with actual transactions, investment activities and other financial data, could also be
submitted periodically to the town board and other management personnel.
11. Accounting to the town board on or before January 20 for all moneys received and disbursed
during the preceding year, and filing a statement at the same time with the town board of all
receipts and disbursements for the preceding year. This requirement does not apply where a
certified public accountant or a public accountant has been hired prior to January 20 to make
an audit to be completed within 60 days after the close of the fiscal year, nor in a town which
has a town comptroller (Town Law, Section 123).
*12. Preparing and filing an annual financial report with the State Comptroller after the close of the
fiscal year, on forms furnished by OSC. The reports are to be filed within 60 days for towns
with populations under 5,000, 90 days for towns with populations from 5,000 to 19,999, or 120
days for towns with populations of 20,000 or more, unless an extension is granted. The State
Comptroller encourages electronic filing in lieu of paper forms. Note that it is the incumbent
supervisor’s duty to file this report (General Municipal Law, Section 30).
*13. Preparing and filing with the town clerk an annual financial report for all funds and accounts
within 30 days after the end of each fiscal year, and providing a certified copy of the report to
the official newspaper for publication (Town Law, Section 29[10]). The supervisor may also
be required to submit to the board, at the time of filing, all records required to substantiate the
accuracy and completeness of the report. Exception: in lieu of this report, the town board may
authorize the supervisor to submit to the town clerk a copy of the town’s annual financial report
to the State Comptroller that is required by General Municipal Law, Section 30. The town clerk
then must provide to the official newspaper either a summary of the report or a notice that
a copy of the report is on file in the town clerk’s office and is available for public inspection
(Town Law, Section 29[10-a]).
14. Acting as budget officer unless the supervisor appoints an individual who must be an elector
of the town and may be any town officer or employee, except a member of the town board
(Town Law, Sections 23 and 103[2]).
* These duties will not be the responsibility of the supervisor if the town board, by resolution, has designated the town comptroller as
accounting officer (Town Law, Section 124).
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15. Prosecuting, in the name of the town, for all moneys or property due the town (Town Law,
Section 29[8]).
16. Leasing, selling and conveying town property as authorized by law (Town Law, Section 29[11]).
17. Issuing junk dealers’ licenses and collecting fees (General Business Law, Section 60).
Transition Into Office
Before taking on the duties of the office, every town supervisor must take the constitutional oath of
office and execute an official undertaking (surety bond). The oath must be filed in the office of the
town clerk (Town Law, Section 25; Public Officer’s Law, Section 10). Section 25 of the Town Law
further provides that each supervisor shall file an official undertaking in the town clerk’s office. In
lieu of individual undertakings, the town board may authorize a blanket undertaking covering all
appropriate officers (Public Officers Law, Section 11).
After the supervisor has filed his or her oath of office and official undertaking, financial responsibility
as supervisor begins. The departing supervisor must turn over all town funds in his or her
possession (Public Officers Law, Section 80; Town Law, Section 29[4]); he or she no longer has any
authority to receive or disburse town moneys.
Accounting Records
Towns generally are required to account for their financial transactions in accordance with Generally
Accepted Accounting Principles (GAAP). The State Comptroller is responsible for prescribing the
systems of accounts utilized by all local governments. OSC’s Accounting and Reporting Manual
(ARM) and corresponding online chart of accounts query identify the various funds and accounts
used by all towns. The ARM also identifies the measurement focus and basis of accounting
for each particular fund. (See the section entitled Town Funds and Account Groups later in this
chapter for more accounting information.) The ARM is available at https://www.osc.ny.gov/local-
government/publications, and the chart of accounts query tool is available at https://www.osc.
ny.gov/local-government/required-reporting/chart-accounts-query.
OSC staff conduct many training sessions each year. Two of the most popular sessions are the
basic and advanced accounting schools. We encourage all supervisors, comptrollers and other
accounting personnel to attend these sessions. For the schedule of these schools, check the OSC
website at https://www.osc.ny.gov/local-government/academy.
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In setting up accounting records, the current supervisor may be able to use the former supervisor’s
records as a reference. Those records must be filed with the town clerk and include:
• General Journals – All Funds,
• General Ledgers – All Funds,
• Cash Receipt Records – All Funds,
• Cash Disbursement Records – All Funds,
• Revenue Ledgers – All Funds,
• Expenditure Ledgers – All Governmental Funds,
• Expense Ledgers – All Proprietary Funds,
• Payroll Records, and
• Canceled Checks, Checkbooks and Bank Statements.
In towns with a population under 5,000, the incumbent supervisor has 60 days to prepare the annual
financial report for filing with the State Comptroller after the close of the fiscal year. An additional
60-day filing extension may be granted by OSC if a written request is received from the chief fiscal
officer before the original 60-day filing period expires (General Municipal Law, Section 30[5]).
In towns with a population from 5,000 to 19,999, the incumbent supervisor has 90 days to
prepare the annual financial report for filing with the State Comptroller after the close of the fiscal
year. An additional 30-day filing extension may be granted by OSC if a written request is received
from the chief fiscal officer before the original 90-day filing period expires (General Municipal
Law, Section 30[5]).
In towns with a population of 20,000 or more, the incumbent supervisor has 120 days to prepare
the annual financial report for filing with the State Comptroller after the close of the fiscal year. The
statute does not authorize OSC to extend the filing date (General Municipal Law, Section 30[5]).
OSC staff are also available to provide assistance if the supervisor needs advice in preparing the
report. The Local Government and School Accountability line can be reached at (866) 321-8503.
A copy of the budget, which is on file in the town clerk’s office, is needed to set up appropriations
and estimated revenue accounts in the subsidiary revenue and expenditure (or expense) ledgers.
The following table lists applicable items which will also be needed to support the various accounts
from the previous fiscal years.
Accounts Applicable Items Needed
Encumbrances Unfilled purchase orders and other commitments
Accounts Payable Unpaid bills from vendors and other sources
Accounts Receivable Uncollected customer billings
Water and Sewer Rents Uncollected customer billings
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Safeguarding Records
The law requires that town records must be adequately protected (Arts and Cultural Affairs Law,
Article 57-A). There are definitive retention periods for specific records. These requirements may
create a space problem that could be solved by destroying obsolete records, but you must first
obtain the permission of the State Education Commissioner (Arts and Cultural Affairs Law, Section
57.25[2]). Forms may be obtained by contacting the State Education Department.
The State Education Commissioner is authorized to issue local government records retention and
disposition schedules which establish minimum legal retention periods. These retention schedules
allow for disposing of records that have been retained beyond the periods set forth in the schedules
(Arts and Cultural Affairs Law, Section 57.25[2]). The law also allows records to be reproduced by
microphotography or other means, with the original records to then be disposed of, even if they have
not met the prescribed minimum legal retention periods, provided that the process for reproduction
and provisions for preserving and examining the copies meet requirements established by the State
Education Commissioner (Arts and Cultural Affairs Law, Section 57.29).
It is important to note that paid bonds and notes of the town are canceled and destroyed pursuant to
Part 55 of the Regulations of the State Comptroller (2 NYCRR 55).
Funds
In government, moneys generated for specific purposes generally must be segregated in the
accounting records and used only for those specific purposes. To ensure that such moneys are
used for the intended purposes, towns and all other local governments are required to use the fund
accounting concepts specified in GAAP.
The technical definition of a “fund” is “a fiscal and accounting entity with a self-balancing set of
accounts recording cash and other financial resources, together with all related liabilities and
residual equities or balances, and changes therein, which are segregated for the purpose of
carrying on specific activities or attaining certain objectives in accordance with special regulations,
restrictions, or limitations” (State Finance Law, Section 2 [8]). A fund is “self- balancing” since it has
its own assets, liabilities and fund balance.
Town Funds and Account Groups
A town should use only those funds necessary to record its financial transactions. As a rule, the
funds listed on the following page are used by towns in New York State.
FUNDS AND ACCOUNT GROUPS CODE
Governmental Funds:
General – Town-Wide A
Special Revenue Funds:
General – Town-Outside-Village B
Miscellaneous Special Revenue C
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Special Grant CD
Highway – Town Wide DA
Highway - Outside Village (Part Town)DB
Water*FX
Sewer*G
Public Library L
Special Districts*S
Permanent Funds PN
Debt Service V
Capital Projects H
Proprietary Funds:
Enterprise E
Internal Service M
Self Insurance MS
Fiduciary Funds
Custodial TC
Private-Purpose Trust Funds TE
Supplementary Accounts:
Non-Current Governmental Assets K
Non-Current Governmental Liabilities W
A – General – Town-Wide. This fund is the principal fund of the town and includes all receipts,
disbursements and other transactions not required to be recorded in other funds. Fees and
expenses of town justices, the town clerk and tax collector, and salary and expenses of the highway
superintendent and other highway administrative personnel are examples of the transactions
recorded in this fund.
B – General – Town-Outside-Village. This fund is used by a town with one or more incorporated
villages to account for activities (such as zoning and planning) that are required by statute to be a
charge on the area of town outside of the villages.
C – Miscellaneous Special Revenue. This fund is used to account for the proceeds of specific
revenue sources that are restricted or committed to expenditures for a specific purpose. This
category would include funds established when the State Comptroller has granted an exclusion
from the constitutional debt limit for self-liquidating bonds or bond anticipation notes for revenue-
producing improvements pursuant to Local Finance Law, Section 123.00. This category would also
include those funds established to benefit the town that were formerly classified as expendable
trust funds. Each miscellaneous special revenue fund must be titled descriptively (e.g., “Golf Course
Fund”) and shall include all financial transactions pertaining to the applicable activity.
CD – Special Grant. This fund is used by each town receiving State and federal aid from
Community Development Block Grants, the Workforce Investment Act or the Section 8 Rental
Assistance Program. The accounting basis is the same as the general fund, including the use
of budgetary accounts. However, the original authorization does not lapse since it is based on
an application approved by local officials and the federal government. Expenditures for capital
purposes are coded (Capital Outlay) in this fund.
* May be accounted for in an enterprise fund. See explanation of enterprise funds below.
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DA – Highway – Town-Wide. This fund is used to account for revenues and expenditures for
highway purposes for those items financed by the entire town.
DB – Highway - Outside Village (Part-Town). This fund is used to account for revenues and
expenditures for highway purposes for those items financed by the area of the town outside the
incorporated village(s). This fund is not used if the town has no villages.
FX – Water. This fund is used by a town which provides a water improvement as a town function
(Town Law, Sections 57 and 209-q).
G – Sewer. This fund is established by a town which provides a sewer improvement as a town
function (Town Law, Sections 57 and 209-q). If sewer rents are not imposed, use the general fund
to account for sewer operations.
L – Public Library. This fund is used only if a town has established a town public library and the
library trustees do not request in writing that the moneys be turned over to the separate library
treasurer. Contractual payments to other libraries are made from the general fund.
S – Special Districts. A separate fund is used to account for revenues and expenditures relating
to the operation of each special district within the town. These funds include fire protection districts
but not fire districts. Taxes levied and collected for fire districts are recorded in the general fund as a
liability to other governments.
P – Permanent Fund. This fund is used to account for and report resources that are legally
restricted to the extent that earnings, not principal, may be used for purposes that benefit the town.
V – Debt Service. This fund is used to account for and report financial resources that are restricted,
committed or assigned to expenditure for the payment of interest and principal on long-term debt
(e.g., serial bonds, statutory installment bonds, capital notes, etc.) with all funds except internal
service funds and enterprise funds. Debt service funds are not required unless the segregation of
resources is necessary or legally mandated (e.g., General Municipal Law, Section 6-l).
H – Capital Projects. This fund is used to account for capital improvements including the
acquisition or construction of capital facilities and other capital assets financed by bonds, bond
anticipation notes and capital notes, State and federal aid, special assessments, and moneys
transferred from other operating funds. Use of a capital fund identifies the expenditures as capital
and continues a capital appropriation beyond the end of the fiscal year. A separate fund must be
maintained for each capital project.
E – Enterprise. This fund may be used to account for any activity for which a fee is charged
to external users for goods and services, and must be used when required by State statute or
regulation. Also, in accordance with GAAP, activities must be reported as enterprise funds if one or
more of the following criteria are met:
• Laws or regulations require that the activity’s costs of providing services, including capital costs
(such as depreciation or debt service), be recovered with fees and charges, rather than with
taxes or similar revenues.
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• The pricing policies of the activity establish fees and charges designed to recover the activity’s
costs, including capital costs (such as depreciation or debt service). Generally, the focus of
these criteria is on fees charged to external users, such as water or sewer rents, and whether
the town board has decided that enterprise fund accounting is appropriate for the activity.
For these activities, the town board should expressly indicate its intent by board action, or by
establishing rates on a cost-of-service basis, rather than on a resource flow basis or by some
arbitrary method.
• The activity is financed with debt that is secured solely by a pledge of the net revenues
from fees and charges of the activity. In New York, this criterion would apply to industrial
development agencies and public authorities that have the legal authority to issue revenue-
backed bonds. Generally, towns and other local governments, which issue general obligation
bonds and notes, do not have this type of authority.
If none of these criteria are met, the activity should be accounted for in the appropriate
governmental fund. For most towns, the use of enterprise funds would be required only for hospitals
and electric utilities. For other activities, the town board would need to determine that enterprise
fund accounting is appropriate for the particular activity.
M – Internal Service. This fund is used to account for the financing of goods or services
provided by one department or agency to other departments or agencies of the town, or to other
governmental units, on a cost-reimbursement basis. This fund should only be used when the
reporting government is the predominant participant in the activity.
MS – Self-Insurance. This fund will be used when the town has established a self-insurance
program on an actuarial basis similar to an insurance enterprise. This fund will be a proprietary fund
using the total economic resources measurement focus and the accrual basis of accounting.
TC – Custodial. This fund is used to account for fiduciary activities that are not required to be
reported in a private-purpose trust fund (TE).
TE – Private-Purpose Trust Funds. These funds are used to account for trust arrangements
where the government itself is not a beneficiary, the assets are dedicated to providing benefits to
recipients in accordance with the benefit terms and are legally protected from the creditors of the
government.
K – Non-Current Governmental Assets. These accounts do not constitute a fund but are a
supplementary self-balancing group of accounts used to record capital assets, except those that
must be accounted for elsewhere. This information is reported as supplemental information in your
report to the State Comptroller.
W – Non-Current Governmental Liabilities. These accounts do not constitute a fund but are a
supplementary self-balancing group of accounts provided for the purpose of recording information
on long-term obligations that have been issued by the town and are not recorded in the liability
accounts of other funds. This information is reported as supplemental information in your report to
the State Comptroller.
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Revenues and Investments
A supervisor receives revenue from several different sources. An acceptable receipt form must be
issued for moneys received if there is no other evidence satisfactory for audit (General Municipal
Law, Section 99-b). The supervisor must also maintain a separate subsidiary account for each
category of revenue.
Types of Revenues and Sources
The table on the following page lists some of the more common types of revenues, their sources
and when they are generally received.
Investment of Idle Funds
Cash not needed for current payments should not remain idle in a non-interest-bearing bank
account. Failure to invest idle cash is as imprudent as paying an excessive price for a commodity
or entering into a contract for unneeded services. A town must have an investment policy and the
policy must be reviewed annually, at which time the town can assess whether the policy should be
amended (General Municipal Law, Section 39).
Ingredients of an Investment Program
A program for investment of public funds should have four basic ingredients: legality, safety, liquidity
and yield. The laws governing the investment of public funds are written to take safety and liquidity
into consideration. The statutes are explicit as to the kind of investments that may legally be made
and the appropriate manner of securing the investments. The fourth ingredient, yield, is a function of
the length of time moneys are available for investment and the type of investment selected.
OSC’s Local Government Management Guide – Investing and Protecting Public Funds provides
guidance to local officials in depositing and investing town moneys. You should study this guide
before the town embarks on an investment program. All investments must be made in accordance
with State statutes and the policy adopted by the town board. The primary concern should be the
safety of town funds. Please see https://www.osc.ny.gov/files/local-government/publications/
pdf/investing-and-protecting-public-funds.pdf.
Program Procedures
The initial step in the process is to forecast and project the cash that will be available for investment.
In other words, how much money will be on hand and not needed for expenditure at various times
during the year? To make a comprehensive determination, it is necessary to project the flow of cash
in and out of the various funds and to analyze bank statements covering an extended period of time
to establish the normal high-low trends in cash balances. The pattern of receipts and payments
can be obtained from the accounting records. Cash balances at the end of each month can also
be determined. A cash flow chart should be prepared for each fund so that a complete investment
program can be initiated. Please refer to Chapter 5, Exhibit D for a sample cash flow forecast.
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REVENUE WHEN RECEIVED
From the State
General Purpose State Aid (Payment is made
in one check and may be used townwide,
town outside village, or any combination)
September
Navigation Law Enforcement Upon receipt and processing of reimburse-
ment request from town (estimate submitted
October 1; actual submitted by January 31)
Justice Court Fund Monthly for courts that file electronically and
participate in the invoice billing procedure;
quarterly for those not participating in the
invoice billing procedure
Consolidated Highway Aid (Capital Improvement)June, September, November and March –
upon receipt and processing of reimbursement
request from the town
Suburban Highway Improvement Program When processing of town claim is completed by
the State
From the County Treasurer
Mortgage Tax June, December
Sales Tax Distribution (if town shares in tax
and receives cash from county treasurer)
At least quarterly
Snow and Ice Contract Payments (if town
contracts with county for snow removal on
county roads within the town)
Depends on contract provisions
From Town Officers or Employees
Town Clerk
Fees for Licenses and Permits (Conservation,
Dog, Marriage, etc.)
By the 15th of each month
Tax Collector or Receiver of Taxes
Town Real Property Taxes and Penalties
See Reports to the Supervisor at the end of
this chapter
Usually Town Clerk or Receiver of Taxes
Sewer Rents and Penalties
Water Rents and Penalties
Special Assessments
Other Fees and Charges Payable to the Town
See Reports to the Supervisor at the end of
this chapter
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Types of Investments
The provisions of General Municipal Law, Section 11, generally govern local government investment
options in New York. Local governments are only permitted to invest in the following:
• Obligations of the United States,
• Obligations of federal agencies if guaranteed by the federal government,
• Obligations of New York State,
• Special time deposit accounts in banks or trust companies located and authorized to do
business in New York State,
• Certificates of deposit issued by banks or trust companies located and authorized to do
business in New York State,
• Reserve funds invested in obligations of the town; special district reserves invested in
obligations issued for purposes of that district, and
• Tax anticipation notes and revenue anticipation notes of another municipality, district
corporation or school district. These investments are subject to the prior approval of the State
Comptroller. The necessary application forms and general instructions must be obtained from
OSC’s Division of Local Government and School Accountability.
Towns may also invest through a “deposit placement program” in accordance with the following
conditions: (i) moneys are invested through a bank or trust company located and authorized to
do business in New York; (ii) the bank or trust company arranges for the deposit of the moneys
in certificates of deposit (CDs) in one or more “banking institutions” (as defined in Banking Law
Section 9-r) for the account of the town Federal Deposit Insurance Corporation (FDIC); (iii) the
full amount of principal and accrued interest of each CD must be insured by the Federal Deposit
Insurance Corporation (FDIC); (iv) the bank or trust company acts as custodian for the town with
respect to such CDs; and (v) at the same time that the town’s moneys are deposited and CDs are
issued for account of the town, the bank or trust company receives an amount of deposits from
customers of other financial institutions equal to or greater than the amount of moneys invested by
the town through the bank or trust company.
The town supervisor is required to maintain a record of investments. The record must identify the
investment, the fund for which the investment is held, the place where the investment is kept, and
the date of sale or other disposition and the amount realized from the investment (General Municipal
Law, Section 11[7]). Please refer to Chapter 5, Exhibit E for a sample record of investments.
Investments must also comply with statutory security and custodial requirements (General Municipal
Law, Sections 10 and 11).
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Disbursement Procedures
Disbursements of town moneys generally must be made by checks signed by the supervisor (Town
Law, Section 29[3]). There are some exceptions such as disbursements from petty cash funds
(Town Law, Section 64[1-a]) and electronic or wire transfers (General Municipal Law, Section 5-a).
Disbursements must be supported by documentation, such as claims, payrolls, contracts or
canceled bonds and notes.
Paying Claims
A claim is generally defined as a bill, account or demand against the town for the payment of
moneys due for services rendered or materials furnished. The words “claim” and “voucher” are often
used interchangeably, and sometimes together as in “claim voucher.”
The Town Law (Sections 118 and 119) generally governs the audit of claims and the issuance of
warrants or abstracts. These provisions provide that, with certain exceptions, no claim may be paid
unless it is audited and approved by the auditing authority. The auditing authority in a town is the
town board, or the town comptroller in towns that have created the office. Certain payments may
be made without the normal audit process, and other payments may be made prior to audit and
approval. For more information on the audit and approval process, see the Claims and Payments
section in Chapter 3.
After claims have been audited and approved for payment, the town clerk or town comptroller
prepares an “Abstract of Audited Claims.” The abstract also contains a warrant or order directing
the supervisor to pay the amounts allowed upon the claim (Town Law, Section 119[1]). A copy of the
abstract may serve as a subsidiary cash record. If the abstract is used as a subsidiary cash record,
the supervisor should record the check numbers on the abstract and record the total of the abstract
in the cash disbursement record, with each fund charged its proper share of the total expended. The
supervisor is also required to record the amount charged to each appropriation account (Town Law,
Section 125) in the subsidiary expenditure ledgers.
Appropriation Control
Separate Appropriation Accounts
A separate account must be maintained for each appropriation. The supervisor may not permit any
appropriation to be overdrawn nor use a fund or appropriation to pay a claim chargeable to another
fund or appropriation (Town Law, Section 125).
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Amending the Budget
No matter how well a budget is planned, unforeseen events may arise which require amending the
budget. There are several procedures to accomplish this. By resolution, the town board may make
additional appropriations or increase existing appropriations by transferring from the unexpended
balances of existing appropriations, transferring from the appropriation for contingencies,
appropriating unrestricted fund balance and/or unanticipated revenues, or by borrowing pursuant to
the Local Finance Law (Town Law, Section 112 [1]).
In addition, certain specific new revenues not initially included in the budget may be appropriated by
resolution of the town board at any time (Town Law, Section 112 [3]).
These specific revenues are limited to the following:
• Grants-in-aid from the State and federal governments
• Gifts which must be expended for particular objects or purposes
• Certain insurance recoveries when proposed to be used for the purpose for which the
insurance was maintained.
Each budget amendment should be recorded in the applicable accounting records.
Unrestricted Fund Balance and Unanticipated Revenues
The question often arises as to when unrestricted fund balance or unanticipated revenues may
be used to increase existing appropriations or make supplemental appropriations. Unrestricted
fund balance generally represents the portion of fund equity from the previous fiscal year that has
not been utilized as a financing source for the current budget. Unanticipated revenues generally
represent those additional revenues received in excess of budget estimates (other than grants-in-
aid, gifts and insurance recoveries discussed above). These sources may be used only to the extent
that all revenues recognized or reasonably expected to be recognized in the current fiscal year,
together with the actual unrestricted fund balance, exceed the total of all revenues and appropriated
fund balance estimated in the budget (Town Law, Section 112 [1]).
The following illustrates the formula for determining availability to make increased or supplemental
appropriations. Amounts shown under “budget estimate” would include any amendments by the
town board to date:
Budget
Estimate Actual Difference
Revenue $50,000 *$49,000 ($1,000)
Fund Balance, Unrestricted 7,000 10,000 3,000
$57,000 $59,000 $2,000**
*Includes revenue reasonably expected by year-end
**The $2,000 is available for supplemental appropriation.
For another illustration, see Question 18 in Chapter 3.
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Transfers
The town board may appropriate unexpended and unencumbered balances of appropriations per
Section 112(1) of the Town Law. These are commonly called transfers between appropriations.
An existing appropriation may be increased or a new appropriation created by the simultaneous
decrease of another appropriation. In certain instances, transfers may be made between funds (see
Town Law, Section 113).
Appropriations for Contingencies
The general fund budget may contain an appropriation for contingencies of up to 10 percent
of all appropriations excluding debt service, judgments, special district purposes, certain
highway purposes and part-town purposes (Town Law, Section 107 [2]). Expenses may not be
charged directly to the appropriation for the contingency account. Amounts appropriated from
the contingency account are to be transferred to a particular appropriation account from which
expenditures are then charged.
Budget Notes
A town may issue budget notes to finance new or increased appropriations. With certain exceptions,
the issuance of budget notes is ordinarily limited to 5 percent of the annual budget (Local Finance
Law, Section 29.00).
Appropriation Accounting
Many local governments use a purchase order system to record encumbrances so that the
availability of appropriation balances may be determined prior to the incurring of a liability by
department heads or authorized subordinates. It is both a general legal requirement (Town Law,
Section 117) and good management practice to determine appropriation balances, whether or not
you use such a system.
Payrolls
Preparation
The importance of preparing payrolls cannot be overemphasized. The time spent in preparing
payrolls and companion records will be more than justified when the annual financial report is
prepared and when other reports are made.
All officers and employees, whether they work full-time or part-time, should be paid from payrolls.
When compensation is not paid from payrolls, required deductions may be easily overlooked, or if
deductions are made, they may be forgotten when remittances are made.
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Determining Proper Rate of Compensation
The first step in preparing a payroll is to determine the rate of compensation. Section 27 of the Town
Law states that the town board shall fix the salaries of all town officers and employees and the
schedule for when those salaries are to be paid. Salaries may be fixed either by board resolution or
through collective bargaining agreement with unionized employees. This information should appear
in the minutes of the town board. Please refer to Compensation of Officers and Employees in
Chapter 3 for the procedure to increase salaries.
In towns that pay on a semi-monthly basis, gross pay for a salaried employee will be 1/24th of the
annual salary. The gross pay of an hourly employee will be the hourly rate multiplied by the number
of hours worked. Overtime should be shown separately at the overtime rate.
Approval of Payrolls
Town officials having direct supervision over employees must certify or, if required by board
resolution, verify that services indicated on the payrolls were actually performed (Town Law, Section
120). The appropriation accounts to be charged should also be shown. In the sample payroll
(see Chapter 5, Exhibit A), the applicable department head or other town official having direct
supervision over the employees to be paid would provide specific information about each employee
and complete at least the information pertaining to days worked, pay rate and gross earnings for the
pay period. Other town personnel may be responsible for ensuring that the required deductions and
withholdings are made and transmitted to the proper parties. A separate payroll sheet may be used
for each department, and the totals summarized by funds on a payroll distribution form to facilitate
posting to each applicable expenditure account (see Chapter 5, Exhibit B).
Civil Service Certification
The required certification of the Civil Service Department or the local municipal commission having
jurisdiction, where required, must appear on the payroll at various times during the year. The
certification must, among other things, state that the persons named on the payroll are employed in
their respective positions in accordance with law and rules made pursuant to law (Civil Service Law,
Section 100). Questions concerning this requirement should be directed to:
New York State Department of Civil Service
Municipal Service Division
Albany, New York 12239
Telephone: (518) 473-5037
Website: http://www.cs.ny.gov/home/msd.cfm
Town officials should contact their local civil service agency to find out the requirements for
reporting personnel transactions.
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Types of Payroll Deductions
A supervisor has no authority to make payroll deductions unless specifically authorized by law
(State or federal) or by collective bargaining agreement. In some instances, there must be a
resolution of the town board, and often, the written authorization of the employee before a deduction
may be made (General Municipal Law, Sections 92-a, 93, 93-b, and 93-c).
Disbursing Payroll Amounts
The next step in the payroll procedure is drawing checks payable to the individuals listed on the
payroll and, in certain cases, disbursing amounts withheld. Some towns, when authorized by a
resolution of the town board, contract with a designated bank or trust company to use a direct
deposit function where paychecks are not written to each employee, but net pay amounts are
deposited directly to an authorized bank account in the name of the employee (Town Law, Section
29 (3); Banking Law, Section 96-b). Whatever method used, the supervisor should ensure that
disbursements for net pay and withholding amounts agree with the approved payroll records. Payroll
amounts should always be posted to the appropriation ledgers in gross. Each check number or
direct deposit notation should be indicated on the payroll.
The manner of disbursing withholding payments varies. Certain items must be remitted immediately
and a separate check is drawn to each party or organization due the amounts. Other deductions,
held for future transmittal, must be safeguarded until paid. Payroll clearing accounts should be
reported in a governmental or a proprietary fund. For specifics, see our accounting bulletin entitled
Accounting and Financial Reporting for Fiduciary Activities as Required by GASB Statement 84.
Which can be found at https://www.osc.ny.gov/files/local-government/publications/pdf/
accounting-and-financial-reporting-for-fiduciary-activities-gasb-84.pdf.
Employee Earnings Record
An individual earnings record should be maintained for each employee. (See Chapter 5, Exhibit
C for a sample.) This form may be used in preparing payrolls and for payroll reports. This record
should be posted each payroll period and reconciled at least quarterly with payroll clearing account
balances.
Allocation of Town Share of Payroll Taxes and Other Employee Benefit Expenditures
Each fund should be charged its fair share of the cost of payroll taxes and other employee benefit
expenditures. The town share of these expenditures should be charged to the same fund or
funds as the salaries or wages of the applicable employees. The town share will be reported in a
governmental or a proprietary fund or may also be remitted directly to the applicable agency.
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Bank Accounts
The number of bank accounts should be kept at a minimum. Except for special bank accounts
required by statute (e.g., most proceeds of obligations for capital projects and other purposes) or by
terms of specific trusts, all town moneys may be kept in a single bank account. Even though having
a single bank account is generally the ideal situation for moneys not required to be deposited in
separate accounts, it is permissible to maintain more than one bank account. Many towns do in fact
keep the following accounts:
• General Fund Bank Account
• Highway Fund(s) Bank Account
• Special District Bank Account
• Payroll Bank Account
• Custodial Bank Account.
Deposits
The supervisor must deposit and secure town moneys within 10 days after receipt (Town Law,
Section 29(2)). This is a minimum requirement. Deposits should be made more frequently as
warranted. The town board is required to designate one or more depositories of public funds, which
must be banks or trust companies, located and authorized to do business in New York State. It
should be noted that not all bank institutions are classified as a “bank” or “trust company” as defined
by the State Banking Law and, consequently, deposits may not be made in a savings bank, credit
union or savings and loan association. In addition, all public deposits in excess of the amounts
insured under the provisions of the Federal Deposit Insurance Act must be secured in accordance
with General Municipal Law, Section 10.
Bank Reconciliation
A bank reconciliation is a schedule showing and explaining the differences between the bank
records of your cash accounts and your own records. Cash accounts in the accounting records
should indicate how much money your town should have. Bank accounts indicate how much money
your town actually has. These two amounts should always agree. Book and bank balances should
be reconciled monthly as outlined in the following steps:
1. Begin reconciliation (see sample below) by recording the book balances from your records and
the bank balance(s) shown on your monthly statement.
2. Arrange paid checks in numerical sequence or ensure that check images agree with your
disbursement records.
3. Compare paid checks or check images with the list of checks outstanding at the end of the
previous month.
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4. Prepare a list of checks that have not cleared the bank.
5. Complete the reconciliation. Should the balances differ, follow steps 6 to 9.
6. Determine any charges or credits on the bank statements that have not been entered in the
accounting records. A general journal entry may be needed to reflect this activity.
7. Trace deposits from the cash receipts journal to the bank statements. List any deposits not
credited by the bank.
8. Compare paid checks with checks issued during the month.
9. If the balances do not agree, start the process from step 1 again.
A sample bank reconciliation is shown below.
Sample Bank Reconciliation
Book Balances:
General Fund $3,694.33
Water District 927.78
Sewer District 763.84
Book Balances 1/31/xx $5,385.95
Less: Bank charges not entered on books (such as returned check)(38.65)
Adjusted Book Balance $5,347.30
Bank Balances 1/31/xx $5,535.80
Plus: Deposits not credited by bank (entered by bank 2/1/xx)78.58
$5,614.38
Less: Outstanding Checks
#463 $ 51.34
#489 68.19
#501 147.55 (267.08)
Net Bank Balance 1/31/xx $5,347.30
Interfund Advances
Towns are authorized to make temporary cash advances of moneys from one fund to another
(General Municipal Law, Section 9-a). The law provides that a cash advance under this section
should be authorized in the same manner as a budgetary transfer between appropriations (by the
town board) and that suitable records of each advance must be kept. Any cash advance must be
repaid as soon as moneys are available, but not later than the close of the fiscal year in which the
advance is made. When a transfer is made between funds supported by different tax or assessment
bases, the repayment of the advance must include an amount reasonably estimated to be the
additional amount that would have been earned on the investment of the moneys in the fund making
the advance had the advance not been made. Finally, because certain specific revenues are
earmarked to be used only for particular purposes, Section 9-a prohibits advances of the proceeds
of obligations or other moneys which are otherwise required by law to be used only for stated
purposes.
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Service Charge for Dishonored Checks
The town board, by resolution, may impose a service charge to be added to any account owed to
the town after a check or other written order tendered as payment has been dishonored (General
Municipal Law, Section 85). Whenever the account is for a tax, special ad valorem levy or special
assessment, the service charge must be included on whatever list of delinquent accounts is
prepared for the enforcement of the lien. The service charge must be collected in the same
manner prescribed by law for the collection of the account for which the check was tendered,
and the municipal corporation may require future payments to be tendered in cash or by certified
or cashier’s check. The board, by resolution, may determine the amount of the service charge;
however, the maximum amount of the charge may not exceed the maximum charge for dishonored
checks provided for in General Obligations Law, Section 5-328(2)(a) (currently $20).
Financial Reports
Reports of the Town Supervisor
The supervisor is generally required to prepare the following financial reports:
• Monthly Statement to the town board
• Annual Financial Report to the State Comptroller
• Annual Report of Receipts and Disbursements to the town board
• Consolidated Highway Improvement Program (CHIPS) Report to the Department of
Transportation.
Monthly Statement to the Town Board
At the end of each month, a detailed statement of all moneys received and disbursed must be made
to the town board and a copy must be filed with the town clerk (Town Law, Section 125[2]). Other
reports could also be submitted monthly, such as comparisons of budget estimates with actual
transactions, an analysis of investment activity or a capital project status report.
Financial Reporting
The Governmental Accounting Standards Board (GASB) requires that local governments issue both
“government-wide statements” and “fund-level statements” in order to comply with GAAP and to
receive an unqualified (“clean”) opinion if town financial statements are audited by an independent
public accountant. The government-wide financial statements should show all town activities
combined as one entity, utilizing the total economic resources measurement focus and accrual
basis of accounting. The fund-level financial statements are intended to show town activities in
separate funds, using the measurement focus and basis of accounting applicable to those funds,
but with reporting focused on major funds. OSC believes that the use of GAAP results in improved
financial reporting for the town. However, we realize that implementation involves additional
resources and associated costs, which may not be justifiable. Consequently, while we encourage all
local governments to comply with GAAP, full compliance is not required to meet the requirements
of General Municipal Law. Annual financial reporting to OSC is accomplished by local governments
filing forms that report information at the fund level, and does not require all of the financial
statements necessary to conform to GAAP. OSC will continue the policy of fund-level reporting.
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Annual Financial Report to the State Comptroller
The supervisor of each town in New York State is required to prepare and file an Annual Financial
Report (AFR), previously known as the Annual Update Document (AUD), with the Office of the State
Comptroller. Towns with a population under 5,000 have 60 days to file their AFRs; however, a 60-
day extension may be granted upon a timely request made by the CFO in the AFR Application. An
explanation of the reason(s) for the extension request must be provided.
Towns with a population from 5,000 to 19,999 have 90 days to file their AFRs, although an
additional 30-day filing extension may be granted by OSC if a request is submitted by the chief
fiscal officer in the AFR Application before the original 90-day filing period expires.
Towns with a population of 20,000 or more have 120 days to file their AFRs, with no provision
for extension.
Preparing and filing the annual report is the duty of the supervisor in office at the time the annual
report must be filed. Refusal or willful neglect to file the AFR is a misdemeanor.
Background
The AFR provides important information to the many groups and individuals who need reliable data
about local government finances. For example:
• Management needs financial information for planning purposes and to ensure and
demonstrate compliance with restrictions on the use of resources.
• Legislative and oversight bodies need financial information to make informed decisions on the
allocation of scarce resources and to monitor management’s compliance with budgetary and
other legal restrictions.
• Some of the data elements reported in the AFR provide the basis by which the Financial
Restructuring Board for Local Governments can determine whether a municipality is “fiscally
eligible” to receive Board assistance. As a result, accurate and timely reporting has become
even more important, since municipalities that have failed to report all necessary data
elements cannot be deemed “fiscally eligible” by the Board.
• Investors, lenders, and credit rating agencies need financial information to determine the
creditworthiness of local governments and their compliance with finance-related legal and
contractual requirements.
• Academia and research groups need data for analysis of local government issues.
• Citizens need financial information to evaluate the financial stewardship of their elected
representatives and to provide a basis for their own informed participation in the budgetary
process
• OSC’s Fiscal Stress Monitoring System analyzes AFR data against financial indicators to
measure drivers of fiscal stress and provides alerts to potential problems in local government
financial operations.
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In addition to developing ways to speed the data collection process, the State Comptroller is
committed to making the financial information in the reports more meaningful, timely and user-friendly.
Annual Financial Reporting Application
OSC has developed a web-based reporting system for the AFR that provides the following benefits:
• Access to the application from anywhere there is an internet connection.
• Access to previous years’ reports.
• Multiple report preparers able to access the application.
• Automated data checking with validation rules to ensure accurate reporting.
• Areas to provide explanations or other comments.
• The ability to print a hard copy of your report.
Feedback from local governments is vital. If you have comments or questions about completing the
AFR, please call (518) 408-4934 or our toll-free number (866) 321-8503.
Real Property Tax Cap Filings with the State Comptroller
Enacted in 2011, the State’s property tax cap law generally limits the amount by which local
governments and school districts outside of New York City can increase property taxes (General
Municipal Law, Section 3-c and Education Law Section 2023-a). The tax cap, which first applied to
fiscal years beginning in 2012, generally limits a local government’s tax levy increase to the lesser
of the rate of inflation or 2 percent with some exceptions, including a provision that allows local
governments to override the cap. The Chief Fiscal Officer of each local government is responsible
for ensuring that a property tax cap form is filed with the Office of the State Comptroller prior to
budget adoption.
For more information on the Property Tax Cap, visit our website at
https://www.osc.ny.gov/local-government/property-tax-cap.
Annual Report of Receipts and Disbursements
The supervisor is also generally required to prepare and file an annual financial report with the town
clerk within 30 days after the expiration of each fiscal year. A certified copy of the report must be
published in the town’s official newspaper (Town Law, Section 29[10]). Alternatively, the town board
may authorize the supervisor to file a copy of the annual financial report to the State Comptroller
with the town clerk within the time period prescribed by Section 30 of the General Municipal Law;
however, if the time period for filing has been extended by the State Comptroller, then the time
frame for filing the report with the town clerk shall similarly be extended. The town clerk is then
required to provide for publication to the official newspaper a summary of the report, or a notice
that a copy of the report is on file in the town clerk’s office and available for public inspection and
copying (Town Law, Section 29[10-a]).
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Access to Financial Reports via Internet Website
General Municipal Law Section 30(7) provides that, to the extent practicable, each municipal
corporation (including towns) must make accessible to the public via its official Internet website
(assuming the municipal corporation has an official website) documentation pertaining to its most
recent annual financial reports, current year budget, most recent independent audit report, and most
recent fiscal performance plan or multiyear financial plan required pursuant to State Finance Law
Section 54(10)(g), unless the information is covered by Public Officers Law Section 87(2), which is
part of the Freedom of Information Law (FOIL) and indicates those records or portions of records to
which access may be denied under FOIL.
Reporting Duties of the Town Comptroller
The town board may determine that the town comptroller should be the accounting officer of the
town. When this is the case, the accounting duties and the duties in connection with the previously
mentioned reports are transferred from the supervisor to the comptroller (Town Law, Section 124).
Reports to the Supervisor
Generally, all fees and moneys received by a town officer or employee are the property of the town
and must be paid to the supervisor by the 15th of the month following the month in which they were
received. Moneys transmitted must be accompanied by a verified statement of moneys received. If
the monthly statement and payment are not made, the supervisor is required to withhold the salary
of the officer or employee until a report of any moneys paid is submitted (Town Law, Section 27[1]).
The provisions of this law do not affect:
• A receiver of taxes who deposits money directly to the credit of the supervisor (Town Law,
Section 27[1]).
• Town justices, who are required to report all fees and moneys received to the State
Comptroller within the first 10 days of the month following collection for determination of the
proper distribution of such moneys to various local governments and the State (Town Law,
Section 27[1]).
• A tax collector in a town of the second class, who must pay to the supervisor all tax moneys
collected at least weekly (Town Law, Section 35[1]).
• Within one week from the expiration of the tax warrant, the town tax collecting officer must
pay to the supervisor and all other persons specified in the warrant all moneys received,
unless otherwise provided by law (Real Property Tax Law, Section 940[1]).
Fiscal Stress Monitoring System
The State Comptroller has a constitutional and statutory obligation to examine and report on the
financial affairs and condition of local governments. As part of this function, OSC has developed
a public fiscal stress monitoring system that will identify local governments and school districts
that are in fiscal stress as well as those showing susceptibility to fiscal stress. The data for the
monitoring system is drawn from AFRs filed by local governments and the ST-3 reports filed by
school districts. As a result, the system imposes no additional reporting requirements on local
governments. More information about the system is available on our website at https://www.osc.
ny.gov/local-government/fiscal-monitoring.
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Chapter 3 - Budgets and Finances
In this chapter, all references are to the Town Law unless otherwise specified. Also, all dates in
parentheses are for towns in Westchester and Monroe counties only.
Fiscal Year (Section 101)
The fiscal year of all towns begins on January 1 and ends on December 31.
Definitions (Section 103)
The following are definitions for use in this section:
• Administrative Unit means an office, department, division, bureau, board, commission, district,
or other agency of town government, but does not include a fire district.
• Budget Officer means the supervisor or the person appointed to that office by the supervisor.
An appointee serves at the pleasure of the supervisor. No town board member may be
appointed to be budget officer.
• Capital Project means any physical public betterment or improvement, or related studies,
surveys and plans; land or rights in land; any furnishings, machinery, apparatus or equipment
for any physical public betterment or improvement when such betterment or improvement is
first constructed or acquired; or any combination of these.
• Unappropriated Unreserved Fund Balance1 means the difference between the total assets
for a fund and the total liabilities, deferred revenues, encumbered appropriations, amounts
appropriated for the ensuing fiscal year’s budget, and amounts reserved for stated purposes
determined through application of the system of accounts prescribed by the State Comptroller.
Budgeting
Legislation enacted at the request of the State Comptroller gives towns more flexibility in managing
their fiscal affairs. Chapter 528 of the Laws of 2000 allows carrying over a “reasonable amount”
of unappropriated unreserved fund balance from one year to the next. Chapter 528 allows
funding increases or supplemental appropriations from unappropriated unreserved fund balance
or unanticipated revenues, if the total of all revenues recognized or reasonably expected to be
recognized in the current fiscal year, together with unappropriated unreserved fund balance,
exceeds the total of all revenues and appropriated fund balance estimated in the budget. Chapter
528 also allows towns to expend moneys from a contingency and tax stabilization reserve fund to
reduce projected real property tax increases in excess of 2.5 percent (previously 5 percent), subject
to certain limitations.
1 GASB Statement No. 54 eliminates the unappropriated unreserved fund balance terminology from fund level financial statements.
See OSC’s accounting bulletin, Fund Balance Reporting and Governmental Fund Type Definitions, for a discussion of the fund
balance classifications at https://www.osc.ny.gov/files/local-government/publications/pdf/gasb54.pdf.
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Estimates (Section 104)
The budget officer prescribes the forms for the submission of estimates of revenues and
expenditures for administrative units. The State Comptroller recommends that budget estimate
forms be distributed on or before September 1 (October 1).* Estimates must be submitted to the
budget officer on or before September 20 (October 20).* If the head of an administrative unit fails to
submit the required estimates by that date, the budget officer prepares the estimates for that unit.
Tentative Budget (Sections 106 and 107)
The budget officer reviews the estimates submitted by each administrative unit and may require
the head of any unit to furnish additional information and to answer pertinent inquiries. The budget
officer then prepares the tentative budget with his or her recommendations. The tentative budget
must contain the same information required in the preliminary budget (see below).
The budget officer may attach a budget message explaining the main features of the tentative
budget and include any additional information deemed advisable. The tentative budget, the budget
message (if any), and the estimates and schedules must be filed in the town clerk’s office on or
before September 30 (October 30).*
The town clerk is required to present the tentative budget to the town board at a regular or special
meeting held on or before October 5 (November 10).* The town board may contact the budget
officer and the head of any administrative unit to discuss the tentative budget and the estimates as
originally submitted.
The head of any administrative unit may request in writing to be permitted to explain the unit’s
estimates to the town board.
The board reviews the tentative budget and may make any changes, alterations and revisions which
are consistent with law. Upon completion of the review, the tentative budget with modifications, if
any, becomes the preliminary budget and must be filed in the town clerk’s office. The town clerk
reproduces as many copies for public distribution as the town board directs.
Preliminary Budget (Section 107)
The preliminary budget must be in the form prescribed by the State Comptroller and show, by fund,
the following:
• Proposed appropriations and estimated revenues,
• Estimated fund balances, including:
▪ A breakdown of fund balances estimated for encumbrances,
▪ Amounts appropriated for the ensuing fiscal year’s budget,
▪ Amounts reserved for stated purposes pursuant to law, including reserve funds established
pursuant to the General Municipal Law,
▪ The remaining estimated unappropriated unreserved fund balance for each fund, provided
that the balance shall not exceed a reasonable amount, consistent with prudent budgeting
practices,
* Date in parentheses applies to towns in Westchester and Monroe Counties.
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• Taxes to be levied,
• Salaries of elected officials, and
• Any other information prescribed by the State Comptroller.
The budget may contain an appropriation for contingencies in both town-wide and town-outside-
village funds. Refer to Appropriations for Contingencies in Chapter 2 for limitations.
Amounts to be raised for highway purposes must be within the limitations of Section 271 of the
Highway Law.
The preliminary budget must include any other data that the town board may require.
Exemption Report
Pursuant to Real Property Tax Law Section 495, the town official required to prepare the tentative
or preliminary budget (e.g., the budget officer) must annex to the budget an exemption report.
This report must show how much of the total assessed value on the final assessment roll or rolls
used in that budgetary process is exempt from taxation and must be on a form prescribed by
the Commissioner of Taxation and Finance (Tax and Finance). The report must list every type of
exemption granted and show the cumulative impact of each type of exemption expressed either as
a dollar amount or as a percentage of total assessed value on the roll, the cumulative impact of all
exemptions, and the cumulative amount expected to be received from recipients of each type of
exemption as payments in lieu of taxes (PILOTs) or other payments for municipal services. Notice
of the report must be included in any notice of the preparation of the budget otherwise required by
law (e.g., the notice of hearing on the preliminary budget), as well as posted on any bulletin board
maintained by the town and any website maintained by the town. Under Section 495, the report
becomes part of the final budget. The Office of Real Property Tax Services, a Division within the
Department of Taxation and Finance, has a sample report form is available on its website at
http://www.tax.ny.gov/forms/orpts/exemption.htm.
Part-Town Activities
For towns that contain one or more villages, certain activities are financed by revenues raised in the
portion of the town outside the villages. The town board has little discretion to determine whether or
not certain other transactions are budgeted and accounted for as part-town activities. Generally, all
real property taxes raised for town purposes must be levied on the whole area of the town, including
the real property located in villages situated within the town, unless there is a State statute that
requires or permits any given expenditure to be raised from taxes levied on only the unincorporated
area of the town. These activities are often referred to as part-town activities or outside village
activities. General part-town activities should be budgeted and accounted for in the General – Town
Outside Village fund (B); highway part-town activities should be budgeted and accounted for in the
Highway – Outside Village (Part-Town) fund (DB).
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Revenues and expenditures for certain general activities must be budgeted and accounted for in the
General – Town Outside Village fund (B). For example:
• Code Enforcement and Building Inspection Town Law, Section 138
• Zoning and Planning Town Law, Section 261
• Planning Boards, Officers and Employees Town Law, Section 271
Revenues and expenditures for the following highway activities must be budgeted and accounted for
in the Highway – Outside Village (Part-Town) fund (DB):
• Repair and Improvement of Highways Highway Law, Section 277
Accounting for Sales and Use Tax Distributions from the County
Counties are authorized to voluntarily share some of their sales and use tax collections with certain
local governments (Tax Law, Section 1262). Generally, there are two ways a county may share
these revenues with towns. One is by applying the moneys first to reduce county real property taxes
in the towns, and the other is by making cash distributions. When a county uses moneys to reduce
county real property taxes, the towns have no transactions to record. When the county makes
distributions in cash to towns, the towns must budget and account for the transactions.
If a town has one or more incorporated villages, each village can elect to receive a share of the
cash amount allocated to the town. When a town and all villages within the town elect to receive
cash directly from the county, the reduced amount received by the town must first be used for
“part-town activities.”2 These “part-town activities” include transactions required to be budgeted and
accounted for in the General – Town-Outside-Village fund (B) and the Highway – Outside Village
(Part-Town) fund (DB). Eligible part-town activities for this purpose exclude special districts, except a
fire protection district that encompasses the entire area of the town outside the villages. As a result,
sales and use tax distributions from the county could be allocated to the Fire Protection District fund
(SF).
If a town has one or more villages, and the town and all the villages within the town elect cash, and
if the amount distributed to the town is sufficient to reduce all the part-town real property tax levies
to zero (B, DB and possibly SF), Tax Law, Section 1262, authorizes the town to use the excess
amounts to reduce general town taxes, to reduce county real property taxes on the area of the
town outside the villages for other “part-town activities,” or any combination of these. The proper
allocation of sales and use taxes distributed by the county can be difficult to understand at times. If
town officials have questions about the allocation of sales and use taxes distributed by the county,
they should call OSC’s legal staff for advice at (518) 474-5586.
Fire District Budgets (Section 105)
The boards of fire commissioners must file their budgets with the town budget officer by November
7. The budgets must be in the same form as the town budget (see preliminary budget above). The
budget officer must add the fire district budget to the town’s annual budget. No changes may be
made in the fire district budget by either the budget officer or the town board.
2 Tax Law, Section 1262-b authorizes towns in Westchester County to reduce property taxes in either the general fund town-wide or
the town-outside-village fund or a combination of both.
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Interest Charges Against Districts (Section 114)
The town board may include in the annual budget of a special district a charge against the district for
interest paid or to be paid on tax or revenue anticipation notes issued for district purposes.
Public Hearing (Section 108)
On or before the Thursday following the general election (on or before December 10),* the town board
must hold a public hearing on the preliminary budget.
A notice of the public hearing must be published at least five days prior to the date specified for the
public hearing in the official newspaper. If the town does not have an official newspaper, the notice
should be published in a newspaper having general circulation in the town. The town board, by
resolution, may require additional publications of the notice of hearing.
The notice must state:
• The time and place where the hearing will be held
• The purpose of the hearing
• That a copy of the preliminary budget is available at the town clerk’s office where it may be
inspected during office hours
• The proposed salary for each member of the town board, an elected town clerk and an elected
town highway superintendent.
At least five days before the day designated for the public hearing, a copy of the notice must be posted
on the signboard of the town.
The hearing may be adjourned from day to day, but not beyond November 15 (December 15).
At the public hearing, any person may be heard in favor of or against the preliminary budget or any
item therein.
Final Revision and Adoption of Budget (Section 109)
After the public hearing, the town board may further revise the preliminary budget, subject to the
restrictions of Section 107 (i.e., must be in the prescribed form, appropriations for contingent purposes
must be within the 10 percent limitations, etc.).
The budget must be adopted by November 20 (December 20)* and be entered in the minutes of the
town board. The preliminary budget as adopted becomes the annual budget of the town for the next
fiscal year.
If the town board fails to adopt a budget by November 20 (December 20),* the preliminary budget, with
such revisions as the town board may have made, will constitute the budget for the ensuing fiscal year.
* Date in parentheses applies to towns in Westchester and Monroe Counties.
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Tax Levy (Section 115)
The town clerk is required to prepare and certify in duplicate a copy of the annual budget as adopted
by the town board, together with estimates for special improvement districts. The town clerk must add
a copy of each fire district budget to the town’s annual budget and, within five days, deliver two copies
of the budget to the town supervisor. The supervisor must then present the copies of the annual
budget within 10 days of receipt to the county board for levy of the taxes specified in the budget.
Supplemental Appropriations (Section 112)
The town board, by resolution, may make supplemental appropriations from unexpended balances
of other appropriations, the appropriation for contingencies, unappropriated unreserved fund
balance or unanticipated revenues within a fund, or borrowings made pursuant to the provisions
of the Local Finance Law. However, unappropriated unreserved fund balances or unanticipated
revenues may be used only to the extent that the total of all revenues of a fund recognized or
reasonably expected to be recognized in the current fiscal year, together with the unappropriated
unreserved fund balance, exceeds the total of all revenues and appropriated fund balance as
estimated in the budget.
The town board may direct the supervisor to pay the county treasurer moneys from any source
(except borrowings) not otherwise committed or appropriated to reduce the levy for State and
county purposes. The moneys must be paid to the county treasurer prior to the levy of county taxes.
State and federal grants-in-aid, gifts which must be expended for a particular object or purpose, and
insurance recoveries for the loss, theft, damage or destruction of real or personal property which
are proposed to be used or applied to repair or replace such property, may be appropriated by
resolution of the town board at any time.
Transfers (Section 113)
The town board, by resolution, may transfer surplus moneys, contingent appropriations and
unexpended balances from:
• The General Fund – Town-wide, to the portion of the Highway Fund for which taxes are levied
on the entire area of the town
• The General Fund – Town-Outside-Villages, to the portion of the Highway Fund for which taxes
are levied solely on the area outside villages.
Note: There is no authority to transfer from the Highway Fund to the General Fund.
Transfer of Appropriations (Highway Law, Section 285-a)
Transfer of unneeded appropriations may be made among the major areas of highway expenditures
with the same tax base.
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Encumbering Appropriations (Section 110)
Each head of an administrative unit is required to file with the supervisor a list of unpaid obligations as of
the close of the fiscal year. (A sample form is in Chapter 5, Exhibit F.) In turn, the supervisor is required
to encumber the applicable appropriation account balances to the extent of such unpaid obligations. The
town board may require that appropriations be encumbered at more frequent intervals.
Lapse of Appropriations (Section 111)
Balances of appropriations that are not encumbered lapse at the close of the fiscal year. However,
an appropriation for a capital purpose continues in force until the purpose for which it was made has
been accomplished or abandoned.
Compensation of Officers and Employees (Sections 27, 108)
Proposed salaries of town board members, an elected town clerk and an elected town highway
superintendent must be set forth in the notice of public hearing on the preliminary budget. The town
board may increase these salaries in excess of the amount specified in the notice, for not more
than one fiscal year, by adopting a local law subject to permissive referendum requirements. Other
salaries may be established and, generally, increased by resolution of the town board. The salary
fixed by the town board for a budget officer is in addition to any other compensation received for
services in another position.
Budget Calendar
Steps in Budget Process Deadline Date Towns in Westchester
and Monroe Counties
1. Budget officer furnishes heads of
administrative units (departments and
officials) with estimate forms.
Early enough to give
sufficient time to prepare
by approximately 9/1.
Early enough to give
sufficient time to prepare
by approximately 10/1.
2. Submission of estimates* (Section 104).9/20 10/20
3. Filing of tentative budget with town clerk
(Section 106(2)).9/30 10/30
4. Town clerk submits tentative budget to
town board (Section 106(3)).10/5 11/10
5. Revision of tentative budget by town
board (Section 106(3)); preparation of
preliminarybudget and filing in town
clerk’s office (Section 106(4)).
Prior to publication of
notice of public hearing on
preliminary budget.
6. Notice of public hearing on preliminary
budget (Section 108).
At least five days prior to
hearing.
7. Public hearing (Section 108).
Thursday following general
election. May be adjourned
but not beyond 11/15.
12/10
8. Final revision of preliminary budget
(Section 109).
After public hearing, but
prior to final adoption.12/15
9. Adoption of budget (Section 109).11/20 12/20
* The budget officer has the responsibility to prepare the estimate if one is not submitted.
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Questions and Answers
1. When should the budget officer distribute budget estimate forms to the department heads?
The law requires that department heads submit their estimates and supporting information by
September 20 (October 20)* on forms provided by the budget officer. The budget officer should
distribute the forms early enough for the department heads to prepare their estimates (Section
104). In small towns, September 1 (October 1)* might be considered as the latest date on which
department heads should receive the estimate forms; larger towns should consider an earlier date.
2. Should an estimate of fund balance be included in the budget for the following fiscal year?
Yes, an estimate of the fund balance on December 31 must be included in each town and special
district fund. The estimates must include information concerning the preliminary budget as shown in
Section 107.
3. What is the limit on the amount that may be appropriated for contingent purposes in the
general fund, town outside villages?
The limit is 10 percent of net appropriations (total appropriations less appropriations for debt service,
judgments, estimates for special district purposes and for the repair and improvement of highways). If
property in villages has been exempt from taxes for highway machinery, the machinery appropriation
would be included in the base. Likewise, if property in villages has been exempt from taxation for snow
removal, the appropriation for this purpose would be included in the base (Section 107).
4. What are the main topics which a budget message should discuss?
Main topics include: changes from the prior budget, such as appropriations for capital projects;
substantial increases in specific appropriations; appropriations for new services, such as garbage and
refuse removal; the financial condition of the town; new or drastically changed revenue sources; or any
other item of interest to the town board and the taxpayers.
5. If a town clerk does not have regular office hours, when and where should a copy of the
preliminary budget be made available for public inspection?
The town clerk should arrange to have the budget available for inspection for a sufficient number of
hours so that the public may be adequately and efficiently informed. The time when the budget is to be
available at the clerk’s office should be made a matter of public knowledge.
6. If several persons object to the preliminary budget or any item(s) in it, is the town board
required to amend the preliminary budget?
No (Sections 108 and 109).
7. What are the duties of the town clerk in the preparation and adoption of the annual town
budget?
In addition to recording town board action on the budget, the town clerk must:
• Prepare and submit estimates for his or her department to the budget officer by September 20
(October 20)* (Section 104).
• File the tentative budget and related papers presented by the budget officer by September 30
(October 30)* (Section 106[2]).
* Date in parentheses applies to towns in Westchester and Monroe Counties.
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• Present the tentative budget and supporting papers to the town board at a regular meeting
or a special meeting held on or before October 5 (November 10)* (Section 106[3]).
• File the preliminary budget in the clerk’s office and make as many copies for public
distribution as the town board may direct (Section 106[4]).
• Publish the notice of public hearing on the budget and post a copy of the notice on the town
signboard (Section 108).
• Enter the adopted budget in the minutes, prepare and certify in duplicate a copy of the
budget together with the estimates for special improvement districts, and deliver two copies
to the supervisor for transmittal to the county legislative board for levy of the tax (Sections
109 and 115).
8. If the town clerk is appointed budget officer, does he or she have to file a separate oath
of office for that position?
Yes (Section 25).
9. If the supervisor acts as budget officer, does he or she have to file a separate oath of
office for that position?
No, he or she is the budget officer by virtue of being supervisor (Section 103).
10. If the supervisor acts as budget officer and the town board has fixed a salary for that
position, is the amount of the supervisor’s salary advertised in the notice of public
hearing on the preliminary budget a combination of the salaries for both positions?
No, only his or her proposed salary as supervisor needs to be advertised (Sections 27[4]
and 108).
11. At the organization meeting in January, the town board set a $600 annual salary for the
budget officer. The supervisor has not accepted any part of the salary. On September 1,
he or she appoints the town clerk as budget officer. How much additional salary is the
town clerk entitled to during the balance of the fiscal year?
Generally, $200, because one-third of the year remains.
12. What are the advantages of encumbering during the fiscal year?
The advantages are that appropriation balances available to carry on town business during
the fiscal year will be more accurate, and that better control during the year will greatly
reduce the possibility that unpaid obligations at the end of the fiscal year will exceed available
appropriation balances.
13. What are the local law procedures to increase the salary of elected town board
members, elected town clerks and elected highway superintendents over the advertised
amount in the notice of hearing on the preliminary budget?
A local law increasing the salary of elected town officers is subject to the following:
• It must be passed by an affirmative vote of a majority of the total voting strength of the town
board (three affirmative votes of a five-member board).
• The style of the local law shall be: “Be it enacted by the town board of the Town of ….”
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• The local law may include only one subject, which must be set forth briefly in the title of the local
law (e.g., “increase salaries of certain elective town officers”).
• The local law must be introduced by a member of the town board and may not be passed until it
is in its final form. It must have been on the desks or tables of members of the board (may be in
a legible electronic format) at least seven days prior to its final passage, exclusive of Sundays, or
have been mailed or emailed3 in PDF format to each town board member at least 10 days prior to
its final passage, exclusive of Sundays. However, if the supervisor has certified that immediate
passage is required, the local law must be passed by an affirmative vote of at least two-thirds (four
votes of a five member board).
• The town board must hold a hearing on the local law, generally on five days prior public notice.
• The local law must be subjected to permissive referendum procedures; thus, it cannot become
effective until 45 days after its adoption if no petition for referendum is filed or, if a petition is filed,
only after it is passed at referendum (Town Law, Section 27; Municipal Home Rule Law, Sections
20 and 24).
14. In a town without a village, may the town board transfer from the appropriation for contingent
purposes to the highway fund?
Yes, but not directly. The town board must first modify the general fund budget to indicate that a
portion of the contingent account balance is being transferred to appropriation account A9901.9
(Transfers, Other Funds). The amount transferred to the highway fund will be recorded as a revenue
in account D5031 (Interfund Transfers).
15. If a water district covers the entire town outside any village(s), may moneys be transferred to
it from the town outside village general fund?
No. There is no provision in New York State law that permits a transfer between such a special
district fund and an operating fund.
16. Assume a substantial amount of unrestricted fund balance and unanticipated revenue
collections in the general fund, town outside village; assume also that appropriation
balances in other operating funds are insufficient. May cash be transferred to these other
funds, and, if so, are there any restrictions?
Transfers of available unrestricted fund balance and unanticipated revenue collections may be made
to funds having the same tax base, such as the general fund – town-outside-village to the highway –
outside-village (part-town) fund.
17. The appropriation for the town youth program is exhausted by August and a service club
donates money to continue the program. May the program be continued and, if so, how are
funds made available?
The contribution may be appropriated immediately by the town board for the purpose for which the
donation was made (Section 112[3]).
3 In general, email may be used if: each board member has an email address; the email address was published on the town clerk's
bulletin board; and the town board has unanimously adopted a resolution authorizing electronic (i.e., email) delivery.
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18. How can it be determined whether there is unrestricted fund balance in a fund which can
be appropriated?
Unanticipated revenues and unrestricted fund balance can be used to increase appropriations. This
can be done when the total of all recognized (or reasonably expected to be recognized) revenues
in a fund for the current fiscal year, plus the unrestricted fund balance, exceeds the total of all
revenues and appropriated fund balance as estimated in the budget. To determine this, the status of
budget and actual accounts must be analyzed as illustrated in the following example:
Status of Accounts
Code Account Title Type of Account Amount
510 Estimated Revenues Budgetary $50,000*
599 Appropriated Fund Balance Budgetary $10,000*
980 Revenues Actual $55,380**
912 Fund Balance, unrestricted Actual $9,015***
Analysis Budget Actual Difference
Revenues $50,000*$55,380**$5,380
Fund Balance, unrestricted $10,000*$9,015***($985)
Total $60,000 $64,395 $4,395
* The amounts shown in the adopted budget, with any subsequent amendment by the town board
** The revenues expected to be received through the end of the year
*** The actual unrestricted fund balance
In this example, up to $4,395 could be used to increase appropriations. The accounting entry would
credit appropriations and debit estimated revenues to alter these two accounts. The debit is to
estimated revenues because the excess actual revenues are being appropriated.
19. Can a specific revenue in excess of its particular estimate be appropriated? For example,
if actual interest revenue is $9,000 and $5,000 is estimated in the budget, can $4,000 be
appropriated?
The answer is no. Other revenues may be below their budget estimates. The criteria from answer
18 above generally must be used to determine the overall financial picture before the budget can
be amended (Section 112[1]).
20. Are there any exceptions to using the formula?
Yes, the following can be appropriated at any time (Section 112[3]):
• Federal or State grants-in-aid,
• Gifts that must be spent for a particular object or purpose, and
• Insurance recoveries for loss, theft, damage or destruction of property that are used to repair
or replace the item(s) damaged, stolen, lost or destroyed.
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Accounting
Duties of the Supervisor (Section 125)
The supervisor shall:
• Keep records in the manner and form prescribed by the State Comptroller,
• Show on every check the fund against which it is drawn and the appropriation chargeable,
• Not permit any fund or appropriation to become overdrawn, nor charge one fund or
appropriation to pay a claim chargeable to another,
• Prepare and submit to the town board, at the end of each month, a detailed statement of all
moneys received and disbursed for that month, and file a copy with the town clerk, and
• Pay out money only upon warrant, order or draft of the town clerk after audit and allowance
of the town board, unless there is a town comptroller. Where there is a town comptroller, the
supervisor shall pay out money only upon warrant, order or draft of the town comptroller. The
supervisor, without prior audit, may pay principal and interest on indebtedness, stated salaries
or compensation of officers or employees, amounts due on contracts for periods exceeding
one year for which provisions have been made in the budget, and claims for utility services,
postage, freight and express charges, if the town board has authorized such claims to be paid
in advance of audit pursuant to Town Law, Section 118.
Town Comptroller as Accounting Officer (Section 124)
The town board of any town of the first class, or any town of the second class having a population
of more than 40,000 according to the latest federal census, may establish the office of town
comptroller by board resolution (Section 20[3][b]). In a town where a comptroller has been
appointed, the town board may determine the comptroller to be the accounting officer and transfer
to the comptroller the accounting duties of the supervisor. The supervisor remains treasurer of the
town and pays out town moneys upon warrant of the town comptroller. In general, every officer
is required to submit to the supervisor a monthly statement of moneys received (Section 27) and
furnish a copy to the town comptroller.
The town comptroller as accounting officer must:
• Keep detailed accounting records,
• Provide the town board a detailed monthly statement of all receipts and disbursements, and file
a copy in the town clerk’s office,
• Prepare and file the town’s annual financial report with the State Comptroller, and
• Prepare and file with the town clerk an annual financial report of the moneys received and
disbursed, with bank certifications showing the amount of money on deposit, within 30
days after the expiration of each fiscal year, and provide a copy of the report to the official
newspaper for publication (Section 29[10]). Alternatively, the town board may authorize the
town comptroller to file with the town clerk a copy of the annual financial report to the State
Comptroller, to be filed within the time periods specified in General Municipal Law, Section 30
(Section 29[10-a]).
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In addition to the above, the town board, by ordinance, may also provide the town comptroller with
either or both of the following powers and duties of the supervisor (Section 34):
• Keeping appropriation accounts and preventing overdrafts, and
• Drawing checks upon funds and appropriations, provided that the checks are countersigned by
the supervisor.
The town comptroller must furnish the supervisor with information and data the supervisor requires
to perform his or her duties or to make reports required by law.
Claims and Payments
Form of Claims (Section 118)
A claim may be generally defined as a bill, account or demand against the town for the payment of
moneys due for services rendered or materials furnished. A voucher is generally the form that is
prepared by the vendor and submitted with other appropriate documentation as the claim. In many
instances, the terms “claim” and “voucher” are used interchangeably, and sometimes together, as in
“claim voucher.”
A claim, with certain exceptions, must be:
• Itemized,
• Certified or verified by the claimant, if required by the town board,
• In the form prescribed by the town board or town comptroller,
• Accompanied by a statement by the officer whose action gave rise to the claim that he or she
approves the claim, and that the services were rendered or the goods and materials were
received, and
• Audited and allowed by the auditing authority prior to payment.
See Chapter 5, Exhibit G for a sample claim voucher used by many local governments. A voucher in
this format should be completed by the claimant and submitted to the town. The form should include
information needed to process the claim for payment, such as the account to be charged, approval
by the town officer or employee who gave rise to the claim, and approval by the auditing authority.
Audit of Claims by the Auditing Authority (Sections 118 and 119)
No claim, with certain exceptions, may be paid unless an itemized voucher, in the form prescribed,
has been presented and is audited and approved by the auditing authority. The auditing authority
in a town is the town board, or the town comptroller in towns that have created the office. As claims
are received and presented for audit, they are to be numbered consecutively, beginning with the
number one each year, and should be stamped or otherwise marked with the date of presentation.
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The audit of a claim by the auditing authority should not be a casual review. Instead, it should be
a deliberate and thorough process to determine that a proposed payment is proper and just. The
audit process should ascertain that:
• Each claim is in the proper form, is mathematically correct, meets legal requirements, does
not include charges for taxes from which the local government is exempt, includes discounts
to which the local government is entitled, does not include charges previously claimed and
paid, and is in agreement with an attached purchase order if applicable.
• A proposed payment is for a valid and legal purpose.
• A claim was incurred by an authorized official.
• The goods or commodities were received, or the services were rendered.
• The claim is for the proper amount.
• The claim amount does not exceed the available appropriation. This verification function may
not be necessary during the audit of claims because checking for available appropriations
should be performed during the purchasing function.
A claim may be rejected if any of the above conditions is not met. Whether or not a claim may be
resubmitted for audit and approval will depend on the nature of the deficiency noted during the audit.
A pattern of errors may be an indication of problems with the existing claims processing system
that should be identified and corrected. System improvements will save audit time and expense
by limiting the number of claims denied initially, then resubmitted for a second review. To assist
in auditing claims, the town board should ensure that an adequate system of internal controls
is established. Examples of internal controls include having someone in the pre-audit function
checking that claims are sufficiently itemized, that adequate documentation supports each claim
voucher, that goods or services are actually received or rendered, and that the appropriate
procurement procedure has been followed. (See General Municipal Law, Sections 103 and104-b.)
There is no general statutory requirement that vouchers be signed by town board members or
comptrollers attesting to the audit and approval (OSC legal opinions Nos. 83-144 and 80-417).
However, signing or initialing claims may be required where a town board adopts this requirement
as part of its procedure for audit and approval of claims or if there is a local charter requirement.
In towns, claims generally must be accompanied by a statement by the officer or employee whose
actions gave rise or origin to the claim. Also, the board, by resolution, may determine that claims
be certified or verified.
After claims have been audited and approved for payment, the town clerk or town comptroller
prepares an “Abstract of Audited Claims.” The abstract also contains a warrant or order directing
the supervisor to pay to claimants the amounts allowed upon the claims. A copy of the abstract
may serve as a subsidiary cash record. If the abstract is used as a subsidiary cash record, the
supervisor should record the check numbers on the abstract and record the total of the abstract
in the cash disbursement record with each fund being charged its proper share of the total
expended. The supervisor is also required to record in the subsidiary expenditure ledgers the
amount charged to each appropriation account (Sections 119[1] and 125). A sample abstract is
shown in Chapter 5, Exhibit H.
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If the town board is the auditing authority, the minutes of the board meetings should reflect what
claims have been audited and whether they were allowed or disallowed, in whole or in part. The
resolution to be adopted by the board should be sufficiently detailed to provide, by fund, the exact
claims or sequence of claim numbers audited and approved and their dollar value. Whenever a
board member does not approve a particular voucher and it is allowed over his or her objection,
official note of this should also be in the minutes. A summary of the abstracts may be shown in the
minutes rather than listing each claim.
If the town comptroller is the auditing authority, then suitable records should be maintained to identify
what claims have been audited and whether they were allowed or disallowed, in whole or in part.
The town comptroller performs the claims auditing and processing duties of the town board and town
clerk. The comptroller is also required to keep a separate account for each budget appropriation
and may not allow any fund or appropriation account to be overdrawn, nor draw against a fund or
appropriation account to pay a claim chargeable to another fund or appropriation account.
Payments Not Requiring Pre-Audit (Section 118)
An auditing authority is not required by law to pre-audit payments of fixed salaries, compensation of
officers or employees, principal and interest on indebtedness, or amounts becoming due on certain
contracts which exceed one year for which provision has been made in the budget. However, town
officials should perform some verification function to ensure that the amounts to be paid agree with
the town’s obligation.
Payments Allowed Prior to Audit (Section 118)
The town board, by resolution, may permit the supervisor to pay claims for public utilities, postage,
freight and express charges before they are audited. For towns, the term “public utilities” includes
electric, gas, water, sewer and telephone services and the purchase of fuel oil. All such claims must
be presented for audit at the next regular board meeting or comptroller audit, and the claimant and
the town officers incurring or approving these claims are jointly and severally liable for any amount
disallowed upon audit.
Town Charges (Section 116)
Towns are authorized to incur expenses for such items as compensation and actual and necessary
expenses of town officers and employees; damages recovered against a town officer for any
act performed in good faith in his or her official capacity; expenses incurred by a town officer for
insurance against loss of public moneys through theft, robbery or burglary; fees for examination
of animals by a veterinarian for infectious diseases; reasonable fees of a physician for examining
persons arrested in the town and charged with DWI; independent audit of town records by a CPA or
PA; expenses of certain training courses for town officers and employees; dues for the Association
of Towns; publication and distribution of reports of the fiscal affairs of the town; and the purchasing
of labor-saving devices.
The purposes for which town funds may be expended are not limited to those specified in this
Section of the Town Law.
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Prohibited Expenditures (Section 117)
In general, unless provision has been made in the annual budget or a supplemental appropriation
has been provided, no officer, board, department or commission may expend, or contract to
expend, any money or incur any liability or enter into any contract which involves the expenditure of
money for any purpose, except leases or contracts as may have been entered into by the town for a
term exceeding one year. Town Law, Section 117, provides that any contract, either verbal or written,
made in violation of this prohibition is null and void.
Advertising for Bids (Town Law Section 122; General Municipal Law, Article 5-A)
Towns are generally required to advertise for competitive bids when procurements exceed certain
dollar thresholds. Unless an exception applies, purchase contracts involving expenditures in
excess of $20,000 and contracts for public work involving expenditures in excess of $35,000 are
generally subject to competitive bidding under the law. When using competitive bidding, contracts
are awarded to the “lowest responsible bidder” after public advertisement for sealed bids. Towns,
however, may elect to award “purchase contracts” which exceed the monetary threshold on the
basis of “best value,” as an alternative to awarding contracts to the “lowest responsible bidder”
(General Municipal Law, Section 103). “Best value” is defined, in part, as a basis for awarding
contracts “to the offerer which optimizes quality, cost and efficiency, among responsive and
responsible offerers” (State Finance Law Section 163[1][j]; see also General Municipal Law Section
103). In addition, the town board is responsible for adopting procurement policies and procedures
applicable to the procurements of goods and services not subject to competitive bidding to help
ensure that competition is sought in a reasonable and cost-effective manner (General Municipal
Law Section 104-b).
Payrolls (Section 120)
Payrolls for personal services by persons other than an elective officer must be certified by the
officer or employee having direct supervision. Certification must attest that services were actually
performed by the person(s) mentioned in the payroll. In lieu of certification, the board, by resolution,
may determine that payrolls may be verified by direct supervisors.
Judgments (Section 121)
The town board may provide by taxation, or by borrowing (pursuant to the Local Finance Law), the
money necessary to pay judgments, or to pay amounts required by actions, proceedings or claims
which have been compromised or settled in the manner provided in Section 68 of the Town Law.
Annual Accounting by Town Officers and Employees (Section 123)
All town officers and employees who receive or disburse moneys, except town justices, must file
detailed statements with the town board of all receipts and disbursements for the fiscal year, on
or before January 20. The statements must be recorded in the minutes. Town justices must also
produce their dockets for examination. In addition, all officers and employees who receive or
disburse moneys must produce all pertinent books and records for audit by the town board.
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A member of the town board may not participate in the board’s audit of his or her report and
records, or the audit of any other account in which he or she has an interest.
The requirement for an annual audit by the town board does not apply to towns having a town
comptroller (who would be responsible for the annual audit instead of the board) or to towns which
engage the services of a CPA or public accountant to make an annual audit to be completed within
60 days of the close of the fiscal year.
For annual reporting by the town supervisor, see Chapter 2.
Responses to Municipal Audit Reports
All local governments and school districts that receive audit reports with recommendations
should file a corrective action plan (CAP) with the Office of the State Comptroller (OSC). Local
governments and school districts are currently authorized to respond in writing, within 90 days, to
any audit findings and recommendations made by OSC or by an independent public accountant
(General Municipal Law, Section 35). The law is intended to encourage local government and
school district officials to promptly acknowledge and respond to weaknesses identified in audit
reports. It also requires local governments and school districts to give public notice that an audit
was performed and that the governing board, in its discretion, may prepare a written response to the
audit. In addition, local governments and school districts are required to furnish OSC with copies
of reports of external audits performed by independent public accountants and management letters
prepared in connection with such audits (General Municipal Law, Section 35[4]).
CAPs provide an opportunity for a governing board to communicate how audit findings and
recommendations will be used to improve operations and internal controls. Although implementation
plans may be designed by key officers and managers within the local government or school
district, the governing board, with the audit committee (if applicable), must review and approve the
entire CAP. The governing board’s oversight of the CAP process is important because it sends a
positive message to the public, and to employees, about the “tone at the top” regarding the board’s
commitment to safeguarding assets and making government operations more effective.
When preparing a CAP, officials should describe each corrective action in sufficient detail
to demonstrate clearly what corrections have occurred, or are planned, in response to each
recommendation. A CAP also should identify the person (or persons), within the local government or
school district, who is responsible for implementing each recommendation and the implementation
date. To be considered effective, the corrective actions must be suitably designed to remedy the
conditions described in the audit report. If officials do not plan to take corrective action for certain
recommendations, they should explain why within their CAP. If their CAP indicates that they will
not implement a recommendation, but will take another equally effective action to address the
situation, their CAP should describe the alternative action in sufficient detail to allow OCS to
assess its reasonableness. In instances where officials disagree with a recommendation, their CAP
should explain the nature of their disagreement and provide a reasonable explanation for not taking
corrective action.
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Chapter 4 - Services and Publications Provided by OSC’s
Division of Local Government and School Accountability
The Office of the State Comptroller has a constitutional and statutory responsibility to oversee the
fiscal affairs of local governments. OSC’s oversight and support of local governments are led by the
Division of Local Government and School Accountability. The Division’s basic mission is to serve
taxpayers’ interests by improving the fiscal management of local governments and school districts in
New York State.
The Division operates under the principle of partnership with local governments, sharing information
and offering a range of services to help these governments operate more efficiently and effectively.
These services include providing accounting, management and other guides; technical assistance
publications and bulletins; and a variety of training opportunities and consulting services. Our
performance audits identify areas where local governments may improve services or reduce costs,
and our research studies describe and analyze various policy issues.
The Division has expanded its traditional accountability role and today actively promotes government
reform by presenting audits, research and other public information on critical local government policy
issues. These efforts often pave the way for local or State action, including legislation.
OSC oversees a great number and diversity of local governments and special purpose units.
These include thousands of general purpose local governments (counties, cities, towns and
villages), and hundreds of school districts and fire districts. In addition, there are thousands
of other local entities that provide some type of public service, including public libraries, joint
activities, charter schools, housing authorities and industrial development agencies.
Finally, beyond these basic units of government are thousands of improvement districts which are
components of towns or counties, rather than separate entities. The most common are water, sewer,
lighting, drainage, fire protection, park and refuse districts. These districts allow the town or county
to implement property taxes or user fees only for the properties that receive such services.
Audits
In 2022, the Division of Local Government and School Accountability issued 300 audit reports,
of which 61 related to town audits.4 These reports covered a broad range of audit objectives that
addressed topics including capital projects, cash receipts, claims auditing, financial condition,
information technology, inventories, justice court operations, payroll/employee benefits, purchasing,
records and reports, town clerk operations and utilities, among others. The Division’s town audits
quantified a total of $387,447 in potential cost savings and disclosed $24,816 in fraudulent or
wasteful uses of funds. Visit https://www.osc.ny.gov/local-government/audits to access audits
of local governments. The following are examples of audits released for 10 towns in 2022.
4 The Division's purview does not include New York City.
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Capital Projects: The town board did not properly plan, authorize or monitor a capital project. In
fact, the board did not have a thorough understanding of the project’s overall scope and cost before
authorizing it to be built. Consequently, the project likely will cost at least $8.1 million more than the
approved cost of $6.9 million. In addition, the board was not transparent with taxpayers regarding
the scope and cost of the project and did not adopt an itemized project budget.
Cash Receipts: The town’s tax receiver did not properly bill, collect or disburse taxes, fees and
penalties. Although OSC audited the town’s tax receiver in 2006, the town board did not correct
the deficiencies noted in the previous audit, properly oversee the tax receiver’s work or establish
adequate internal controls. Discrepancies totaling approximately $92,000 found during the audit
included parcels that never received tax bills, unsupported billing adjustments, unaccounted for
money and unassessed penalties on late payments. The tax receiver also did not create sewer and
water accounts for all resident parcels and did not bill all accounts for water and sewer charges.
Claims Auditing: The town board did not always seek competition when procuring goods and
services or ensure that all claims were properly audited and approved. Town officials did not solicit
bids for five commodities totaling $197,266 or obtain the minimum required quotes for purchases
totaling $80,360. The board approved unsupported claims totaling $223,781 for payment and
approved other claims twice, which resulted in duplicate payments. In addition, the board did not
approve all credit card purchases before they were paid, and town employees did not present other
purchases to the board for audit.
Financial Condition: The town board did not adopt realistic and appropriate budgets and did not
include fund balance estimates in the town’s preliminary budgets for the 2017-20 fiscal years, as
required by town law. Also, town officials did not effectively monitor the annual budgets. During our
four-year audit period, they levied $37.6 million more in taxes than was necessary to fund budgeted
expenditures. In addition, town officials did not monitor the annual budget in a timely manner. This
resulted in the board approving significant budget adjustments totaling $69.1 million between nine
and 11 months after the end of the fiscal year.
Information Technology: Town officials did not ensure that information technology (IT) systems
were adequately secured and protected against unauthorized use, access and loss. The town board
and officials did not provide IT security awareness training to all computer users or adequately
manage local user accounts and permissions. As a result, four of 10 computers had unneeded and
unused local user accounts. Also, the board did not adopt written procedures for user accounts or
adopt a comprehensive, written IT contingency plan to help minimize the possibility that the town
could lose data or suffer a serious interruption of service.
Inventories: Town officials did not adequately safeguard and account for town assets. Officials did
not maintain a current inventory list, perform periodic physical inventories, or obtain approval from
the town board for all asset disposals. Also, officials did not dispose of town assets according to the
town’s capital asset policy. As a result, 16 assets totaling $35,701 could not be located during an
OSC audit.
56
Justice Court Operations: The town justices did not ensure that their court clerk properly
collected, recorded, deposited, reported and remitted all collections in a timely and accurate
manner. The justices did not prepare monthly accountabilities, provide adequate oversight of
their clerk or ensure that the clerk was properly trained. As a result, the clerk made recording and
reporting errors, which caused the court to owe $21,204 to the OSC Justice Court Fund, $1,701
to crime victims and $439 to defendants. Also, the clerk did not accurately report 186 adjudicated
cases to the New York State Department of Motor Vehicles.
Payroll/Employee Benefits: Town officials did not accurately maintain highway department
employee leave records. Leave balances for a deputy highway superintendent were overstated by
362 hours, which were valued at almost $8,000. Of these overstated hours, 272.5 hours of leave
time were not properly recorded. Another 89 hours were attributed to the deputy’s failure to use sick
leave for lost time due to an occupational injury, which resulted in the town overpaying $6,411 for
the deputy’s health and dental premiums. As a result of our audit and investigation, the deputy was
arrested and charged with grand larceny in the third degree.
Records and Reports: The town supervisor did not maintain the town’s accounting records and
reports in a complete, accurate, up-to-date or timely manner. The town’s accounting records were
unreliable because $2,082,924 in revenues and $673,497 in disbursements were not recorded.
Also, cash balances were understated by about $1.7 million as of June 30, 2021. In addition, the
supervisor did not file the town’s federal payroll taxes in a timely manner, which caused the town
to pay $6,520 in interest and penalties. The supervisor also did not perform bank reconciliations or
prepare monthly financial reports, which he should have submitted to the town board.
Town Clerk Operations: The town clerk did not record all collections received in a timely and
accurate manner, or prepare accountability analyses to ensure that the town had sufficient assets
to cover its liabilities. The clerk also did not deposit all collections intact or on a timely basis. In
addition, the town board did not annually audit or obtain an audit of the clerk’s records and reports.
Based on our audit findings and subsequent investigation, the clerk was arrested and charged with
falsifying business records in the first degree, corrupting the government in the fourth degree and
official misconduct. The clerk pleaded guilty to attempted falsifying business records in the second
degree.
Utilities: Town officials did not provide adequate oversight of water fund operations. We found
that the Town’s utility department clerk did not correctly calculate all water bills, which resulted
in approximately $70,000 of lost revenue. Also, the board did not review and approve water bill
adjustments totaling $233,400, and 28 of those adjustments, totaling approximately $70,100, were
inappropriate. In addition, we found that the consolidated water district had operating surpluses of
more than $465,000 in 2019 and $395,000 in 2020. Furthermore, 28 percent (12 percentage points
above the national average) of the water produced by the town, which equates to 138.6 million
gallons, was considered unauthorized nonrevenue (lost) water.
57
Research
The Division’s Research Unit provides analytical support for the Comptroller’s leadership in local
government policy and reform. Research staff analyze local government data and policy issues,
and present the results of this analysis in many of the Comptroller’s reports on critical trends
affecting local governments.
Town Budget Reviews
Our budget reviews help local governments achieve structural balance in their budgets by evaluating
the consistency and appropriateness of estimated revenues, appropriations and appropriated fund
balances.
Local Official Training
Each year, Division staff members conduct approximately 100 training sessions at dozens of
statewide, regional and online events. These events include conferences, regional workshops,
accounting schools, seminars, webinars and online tutorials. The total registration at these sessions
typically exceeds 10,000 local officials annually. Highlights of our local official training efforts
include:
The Academy for New York State’s Local Officials — Comptroller DiNapoli offers The Academy
for New York State’s Local Officials – an innovative and strategic program that builds on his
commitment to offer a helping hand to local government and school district officials. By increasing
the number of classroom training sessions and web-based seminars, the Academy:
• Provides local officials with a convenient way to improve their knowledge of local government
finances; and
• Delivers a focused curriculum to help both administrators and employees as they carry out their
day-to-day responsibilities.
Local officials, whether they’re new to their jobs or just want to stay informed on the latest
policy developments, will find that our staff closely tracks emerging issues affecting New York’s
municipalities and school districts. This ensures that the Academy provides the most relevant
training on topics such as budgeting, audits, ethics and fraud prevention. With more than 100
training sessions typically offered each year, local officials across the State can rely on the Office
of the State Comptroller’s expert technical assistance to help them improve the fiscal health of their
communities, safeguard public assets, and find new ways to deliver services more efficiently.
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Accounting Schools — In continuing the Comptroller’s efforts to strengthen local government
accountability, the Division conducts eight accounting schools annually. These multi-day online
classes provide officials with information regarding governmental accounting concepts, bookkeeping
procedures, cash management and financial reporting requirements. Each class allows up to 100
local officials or government employees to attend.
Webinars — The Division has increased its efforts to provide low-cost, accessible and timely
training for municipal and school district officials through webinars. Webinars are presented as single
topics recorded and made available on our website for continuous support of local officials in their
day-to-day operations.
Seminars — Division staff conduct seminars for municipal and school district officials each
year. These free events are held virtually and/or at various locations throughout the State.
Seminars generally incorporate 2-3 different topics to help enhance local officials' fiscal
oversight responsibilities.
Regional Events — Division staff members make presentations at a variety of regional
conferences and workshops each year, covering a wide array of pertinent topics.
Technical Assistance and Communications
Several best practice guides have been produced, within the “Cost-Saving Ideas” series,
to provide advice in the areas of health insurance, procurement, credit card use, and cash
management. Local Government Management Guides (detailed later in this chapter) include
guidance for local officials on reserves, strategic planning, financial condition analysis and other
topics.
The Division can electronically distribute reports, bulletins, and newsletters to local government
officials. The Division also actively monitors its local government email box, localgov@osc.ny.gov,
and responds to requests from local governments for information and technical assistance. Annually,
the Division’s seven regional offices respond to thousands of requests for technical assistance.
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Financial Data
The Division collects a wide variety of data relating to local government operations, resulting in
an information repository that is an essential resource for a broad spectrum of users interested in
local government issues. This includes financial data collected annually from the local government
entities we oversee, as well as real property tax information and demographic data (e.g., population,
land area, employment). The financial data is collected under systems of accounting and reporting
prescribed by the Comptroller. These data are a critical input for developing and guiding the
Division’s risk assessment, audit planning, fiscal stress monitoring and research functions.
The local government data are analyzed and summarized in OSC reports, and are made available
to users in a variety of formats, including printed reports and via the web.
A number of external groups use the OSC local government database for a variety of purposes, including:
• Local officials, for management and planning purposes and to provide accountability for
financial operations;
• Governmental, academic and other research groups, for analysis of local government issues;
• The New York State Legislature and State agencies, to monitor programs and allocate
resources;
• Citizens, to be informed participants in the management of local government; and
• Investors and rating agencies, to evaluate the creditworthiness of local governments.
Justice Court Fund
The Division is custodian of the Justice Court Fund (JCF), established to account for the revenues
from fines and penalties collected by the State’s town and village justice courts and other sources.
Town and village justices are required by state statute to report court activities to OSC monthly.
The Justice Court Fund Unit reviews and processes these monthly reports to determine the
distribution of revenues to the local government, the State, and the county in which the municipality
resides. A complex set of state statutes dictate how the revenues are to be distributed. The town’s
Chief Fiscal Officer is responsible for retaining the monthly funds collected by each justice until they
receive the JCF Invoice Billing and Distribution Statement, at which time they are required to remit
the State and county revenue shares to the Justice Court Fund.
The Justice Court Fund Annual Town and Village Court Revenue Report shows the annual
distribution of revenues from the activities reported by your municipal court. This report and other
information are available at https://www.osc.ny.gov/local-government/required-reporting/
justice-court-fund.
60
Annual Financial Reporting Application
OSC has developed a web-based reporting application for the Annual Financial Report (AFR). The
online system provides access to users with varying roles, automated data checks with validation
rules to ensure accurate reporting, areas to provide explanations, access to previous years
reports, and other benefits. An interactive user guide is available on OSC’s website in addition to
instructional videos to provide support. Users may also contact OSC staff for assistance at 1-866-
321-8503, option 4. More information about the Application can be found at: https://www.osc.
ny.gov/local-government/required-reporting/annual-financial-report-afr-modernization-
project
Industrial Development Agency Annual Reporting
Industrial development agencies (IDAs) are independent public benefit corporations authorized
under State law; each is established for the benefit of a particular local government. IDAs are
intended to advance job opportunities and economic welfare by offering financial incentives to
attract, retain and expand businesses. To achieve these goals, IDAs may acquire, own and dispose
of property and issue debt. All IDA property is exempt from property taxes as well as mortgage
recording taxes, and some purchases for IDA projects are eligible for exemption from State and
local sales taxes. IDAs fund their operations by charging fees to businesses that obtain financial
assistance for their projects.
Each IDA is required to submit an annual financial statement to OSC that includes data relevant
to the IDA’s projects, such as the estimated number of jobs created or retained by each project
and the estimated amount of tax exemptions for each project. The Comptroller issues an Annual
Performance Report on New York State’s Industrial Development Agencies that summarizes and
analyzes these financial statements and other IDA-related issues.
Publications Available from the Division of Local Government and
School Accountability
The publications listed in the remainder of this chapter are issued by the Division of Local
Government and School Accountability. Most of our publications are available online at
https://www.osc.ny.gov/local-government/publications. Simply use the filtering options or
enter the publication's title in the search field. These publications may also be requested by
calling (866) 321-8503 or (518) 408-4934.
Accounting
Accounting and Reporting Manual for Counties, Cities, Towns and Villages (formerly
known as the Uniform System of Accounts) — OSC publishes accounting manuals with a
standard chart of accounts, as directed by General Municipal Law, to assist governments in
maintaining accounting records that conform with U.S. Generally Accepted Accounting Principles
(GAAP) and legal requirements. OSC's interactive chart of accounts query tool is available at
https://www.osc.ny.gov/local-government/required-reporting/chart-accounts-query.
61
Accounting and Reporting Manual for Fire Districts — This manual is a comprehensive guide for
fire districts and others interested in accounting and financial reporting by fire districts in New York
State.
Accounting and Reporting Manual for School Districts — OSC has compiled the manual as a
comprehensive accounting and reporting guide for school district officials and others interested in
accounting and financial reporting by school districts in New York State. It provides an overview of
generally accepted governmental accounting and financial reporting principles, along with OSC’s
interpretations of such principles, where pronouncements are silent or do not address problems
common among school districts within New York State.
Introduction to Governmental Accounting — This textbook is designed to provide local officials
and employees with an understanding of the basic concepts of governmental accounting.
Accounting Principles and Procedures — This textbook for OSC’s advanced training course for
local government officials is designed to provide a working knowledge of the accounting and financial
reporting practices applicable to local governments.
Local Government Management Guides (LGMG)
The Local Government Management Guides are a series of publications that include technical
information as well as suggested practices for local government management. The following guides are
currently available at https://www.osc.ny.gov/local-government/publications.
Affordable Care Act — This brochure provides basic information to help local government officials better
understand the Affordable Care Act.
Capital Assets — This guide is designed to help local managers maximize the value received from
their government’s investment in capital assets. Capital assets are defined as tangible or intangible
assets that are used in operations and that have useful lives of more than one year, such as: land
and improvements to land; buildings and building improvements; vehicles; machinery; equipment; and
sewer, water and highway infrastructure.
Capital Projects Fund — Local governments undertake capital projects to acquire, develop, improve
or maintain various facilities, other infrastructure and/or equipment. These projects are generally large
in scale, require large sums of money and are long-term. A capital projects fund is used to account for
the financial resources supporting capital projects during the life of the project. This guide is intended
to provide local officials with an overview of the use of capital projects funds and guidance on the
fundamentals of accounting for capital projects. Accounting and reporting for capital projects can be a
complex matter.
Cash Management Technology — This guide is designed to give the reader an overview of electronic
cash management technologies, as well as the internal controls needed to help detect fraud and ensure
that all transactions are captured. Areas of discussion include the use of online banking, electronic
transfers of funds, accepting credit/debit cards, remote deposit capture, lockboxes, as well as common
protection practices to safeguard your cash. A key concept is that classic internal controls, if well-
designed, all work well with the new cash technologies.
62
Financial Condition Analysis — This module is designed to help you analyze the financial
condition of your local government. It includes sections on defining financial condition, assessing
financial condition, using analytical tools to evaluate financial condition, and improving financial
condition through corrective action. Appendices highlight issues and trends in local government
operations and include a glossary of frequently used financial terms and a listing of data resources
that may be helpful in conducting financial condition analysis.
Fiscal Oversight Responsibilities of the Governing Board — This guide was developed to help
board members and other managers understand and administer key fiscal oversight responsibilities.
It covers the following: monitoring fiscal objectives and associated risks which should encompass all
operational areas; developing policies to help achieve fiscal objectives and address significant risks;
monitoring adherence to established policies to ensure that all objectives are being met and that
all identified risks are routinely controlled; and conducting audits that include guidelines for claims
auditing responsibilities, as well as annual auditing requirements.
Improving the Effectiveness of Your Claims Auditing Process — This guide was written as a
resource for those governing bodies and officials who are responsible for the audit of claims. The
information contained in this module will be valuable for new board members and inexperienced claims
auditors, and a useful refresher for those who have been previously involved with claims auditing.
Industrial Control Systems Cybersecurity – Years ago, industrial control systems (ICS)
were considered low-risk because they were isolated from networks and the Internet, but
interconnectivity with the outside world is now a reality. There are many steps municipalities can
take to improve their ICS cybersecurity and better protect the health and safety of their residents.
Information Technology Contingency Planning — An unplanned information technology (IT)
disruption involving the corruption or loss of data or other computer resources could significantly
curtail an organization’s operations. Proactively anticipating and planning for IT disruptions
prepares personnel for the actions they must take if this happens.
Information Technology Governance — This guide is intended to make the oversight
of information technology less daunting by providing a template for understanding and
strengthening controls over information technology.
Investing and Protecting Public Funds — This guide includes sections about the
fundamentals of investing and protecting local government funds in New York State, including
prudence in investments, active monitoring of cash flow, investment of public funds, protection
of deposits and investments, as well as the formulation of a written investment policy.
Management’s Responsibility for Internal Controls — This guide is designed to introduce
local government and school managers and officials to the components of an integrated
internal control framework.
Multiyear Capital Planning — This guide addresses the process for developing an effective
capital plan program. It discusses developing a capital plan process, creating an asset inventory,
prioritizing capital projects, assessing budgetary impacts, financing capital acquisitions,
adopting a capital plan and budget, and monitoring plan results.
63
Multiyear Financial Planning — This guide is intended to walk readers through the essentials
of financial planning, including how to develop good long-term revenue and expenditure
projections, create practical goals, measure expected benefits from proposed local actions
and performance measures for fiscal change, assess prior years’ performance and draw
those projections together in a useful document for decision-makers. The Multiyear Financial
Planning Guide, complete with the basic plan template, and other multiyear planning tools
are available online at https://www.osc.ny.gov/local-government/resources/planning-
resources.
Personal Service Cost Containment — This guide is designed to assist local governments
in containing certain personal service costs. It is broken down into the following sections:
containing health insurance costs, minimizing unemployment insurance costs, managing workers’
compensation costs, and overtime planning and management. The suggestions in this guide are
ideas for you to consider and possibly utilize in the management of your operations and in the
development of your annual budget.
The Practice of Internal Controls — The purpose of this management guide is to provide
practical information about internal controls for local government financial operations.
Ransomware — This guide describes a typical ransomware attack, highlights a strategy for those
who encounter ransomware and outlines best practices for local governments wishing to apply
preventative measures.
Reserve Funds — This guide is designed to assist public officials in the establishment and use
of reserve funds in accordance with law. Topics include general provisions for reserves, laws
under which municipalities are required or permitted to establish reserves, the purposes for which
each reserve fund may be used, special provisions that pertain to the various reserve funds, and
permitted uses of any unobligated or excess balances of reserve funds.
Seeking Competition in Procurement — This publication is designed as a layperson’s guide to
relevant information on procurement. This guide provides an overview of many procurement topics,
including: competitive bidding, e-bids, cooperative purchasing, procurement policy and procedures,
professional services and insurance, and conflicts of interest.
Shared Services in Local Governments — Sharing services can help municipalities increase
effectiveness and efficiency in their operations. As municipal responsibilities become increasingly
complex and demanding, municipalities should explore shared services and other cooperative
opportunities as a way to reduce or avoid costs, improve service delivery or maintain services. This
module provides guidance and information on all aspects of implementing shared services.
Strategic Planning — This guide is designed for both elected and appointed local officials who are
interested in strategic planning. The module assumes no prior knowledge of strategic planning, and
offers a description of strategic planning, key terms and concepts, and benefits of strategic planning,
providing a “how-to” reference that takes you from inception to implementation.
64
Travel and Conference Expense Management — This guide provides an overview of key
elements to consider when developing or updating your travel and conference policy. The module
also includes practical information about: establishing lodging, meal and mileage rates; standardized
travel forms; using credit cards and cash advances to pay for travel; extension of travel for personal
reasons; travel expenses of spouses and other non-employees; and other topics associated with the
management of travel and conference expenses.
Trouble Ahead: Managing Your Budget in Times of Fiscal Stress — This guide presents a step-
by-step process for local governments to follow to determine what budget assumptions may need
revisiting, what expenditures may need to be reduced to maintain budget balance, and where they
stand financially throughout the fiscal year.
Understanding the Budget Process — This guide is a resource for those governing bodies and
officials who are responsible for creating and implementing the annual budget. The guide provides
the framework for the development, preparation and monitoring of the annual budget.
Wireless Technology and Security — There are steps that local governments and school districts
can take to help mitigate the risks of using wireless technology. Although wireless environments and
their related security systems can be quite complex, local governments can implement controls with
relative ease and without incurring additional cost.
Management Topics by Position
Handbook for Town and Village Justices and Court Clerks — This handbook assists town
and village justices and court clerks in fulfilling the financial reporting requirements of town and
village courts.
Cost-Saving Ideas
The following are a series of cost-saving topic areas and resources for local government officials
looking to make operations more efficient. These items can be found at
https://www.osc.ny.gov/local-government/publications
• Capital Planning for Local Governments and School Districts
• Capital and Repair Reserve Funds for Water and Sewer Districts
• Cash Management for Local Governments
• Containing Employee Health Insurance Costs
• Credit Card Accountability: Minimizing the Risk of Error, Misuse and Fraud
• Electronic Banking
• Establishing an Effective Fleet Management System
• Evaluate the Efficiency of Your Water Delivery System
• Evaluating Solid Waste Collection Options
• Going Green – State Comptroller Thomas P. DiNapoli’s Green Initiative
• How to Reduce Energy Costs
65
• Justice Court Consolidation in Villages and Towns
• Managing Workers’ Compensation Costs
• Managing Your Travel and Conference Expenses
• Minimizing Unemployment Insurance Costs
• Monitoring Health Insurance Premiums for Retirees
• Overtime Planning and Management
• Reviewing Your Revenue Collection Process
• School District Auditing Roles, Responsibilities and Resources
• Using State Contracts to Acquire Goods or Services.
Local Government Data
Open Book New York — This online resource provides data on local governments, State contracts,
public authorities and State spending and payments. The local government information includes
data on the Property Tax Cap, local revenues and expenditures and local government debt-related
activity. It can be accessed at https://www.openbooknewyork.com/index.htm.
Financial Data for Local Governments — This resource includes detailed financial data sets
for local governments, school districts, fire districts, industrial development agencies, local
development corporations and other local governmental entities. Years of historical data can be
downloaded in spreadsheets. This data is available at
http://wwe1.osc.state.ny.us/localgov/findata/financial-data-for-local-governments.cfm.
Real Property Tax Rates and Levies — This resource includes local government real property tax
levies, taxable full value and full value tax rates from 2013 on. Data on overlapping real property tax
levies and rates is available for 2000 to 2012. School district real property tax rates are available
from 2000 on. Please see https://www.osc.ny.gov/local-government/data/real-property-tax-
levies-taxable-full-value-and-full-value-tax-rates.
Research Reports
The Research Unit produces research reports and data visualizations that cover major issues
affecting local governments, public authorities and school districts. These reports provide an
accessible overview and analysis of policy issues, as well as a consideration of policy implications
for State and local governments.
Recent research reports that are relevant to towns include:
Revenue Impact of Commercial Casinos on Upstate Local Governments
New York State voters approved a constitutional amendment in 2013 which authorized seven
commercial casinos. The first four of those opened between 2016 and 2018 in upstate communities
and the Request for Applications for the remaining three licenses for downstate communities began
in January 2023. This report analyzes the impact the revenue from the four upstate commercial
casinos has had on the affected local governments.
66
Local Governments and Recreational Adult-Use Cannabis in New York State
New York’s recreational adult-use cannabis market represents a new legalized industry and, as
such, its development presents new and unique issues for local governments, particularly for the
cities, towns and villages that will have marijuana retail dispensaries and consumption sites located
within their jurisdictions. The purpose of this report is to briefly provide a background on the 2021
cannabis law, including its major components and actors, and to touch upon its financial and
operational implications for local governments.
New York’s Local Governments Adapting to Climate Change: Challenges, Solutions and
Costs
A sample of 95 local governments across New York State reported $1.34 billion in actual and
anticipated spending on capital projects over a 10-year period, with about $737 million (55% of
the total) in response to climate-related hazards such as increased flooding and storm damage. A
review of New York City’s capital commitments for fiscal year 2023 showed that it included $829
million for adaptation and resilience projects, and another $1.3 billion for projects with adaptation
and resilience components, with planned commitments averaging more than $1.8 billion per year.
Sales Tax Reports
Most counties share some portion of their sales tax with their towns, and the Research Unit issues
quarterly snapshots on their performance, based on data issued by the Department of Taxation and
Finance. It also maintains a table of monthly and quarterly collections in a format that is easy for
local officials to use.
The unit also maintains an interactive map that shows how counties share sales tax revenue with
local governments, including towns.
Fiscal Stress Monitoring System
The unit summarizes trends in FSMS results for municipalities, including counties, cities, towns and
villages.
Annual Reports
LGSAs annual report on local governments provides a summary analysis of the financial state of the
local governments outside of New York City. Its annual report on Industrial Development Agencies
(IDAs) summarizes data reported by IDAs through the Public Authorities Reporting Information
System.
Visit our publications page https://www.osc.ny.gov/local-government/publications for all our
research reports.
67
Chapter 5 - Exhibits
Various forms are referred to in this handbook. To help you better understand the text, the following
forms are illustrated. They may be modified to conform to local conditions.
Exhibit Title
A Payroll Journal
B Payroll Distribution Form
C Employee Earnings Record
D Projected Cash Flow Statement
E Record of Investments
F List of Unpaid Obligations
G Claim Voucher
H Abstract
68
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l
d
i
n
g
Ta
x
NY
S
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t
h
h
o
l
d
i
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x
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c
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c
u
r
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y
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t
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h
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d
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Me
d
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c
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a
l
t
h
In
s
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r
a
n
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e
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h
e
r
Ch
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c
k
No
.
1
2
4
5
6
7
8
9
10
11
1
La
s
t
Na
me
Fi
r
s
t
D
G
R
RC
L
A
AD
N
Ti
t
l
e
P
F/
W
S/
W
SS
M
HI
O
No
.
2
La
s
t
Na
m
e
Fi
r
s
t
D
G
R
RC
L
A
AD
N
Ti
t
l
e
P
F/
W
S/
W
SS
M
HI
O
No
.
3
La
s
t
Na
m
e
Fi
r
s
t
D
Th
i
s
sa
m
p
l
e
fo
r
m
co
n
t
a
i
n
s
th
e
es
s
e
n
t
i
a
l
s
of
a
to
w
n
pa
y
r
o
l
l
.
Th
e
va
r
i
o
u
s
e
x
p
e
n
d
i
t
u
r
e
a
c
c
o
u
n
t
s
to
be
c
h
a
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e
d
w
i
t
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t
h
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g
r
o
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s
p
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l
l
am
o
u
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ca
n
be
su
m
m
a
r
i
z
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d
on
th
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ac
c
o
m
p
a
n
y
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n
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Pa
y
r
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l
l
Di
s
t
r
i
b
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t
i
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fo
r
m
.
Ne
t
pa
y
an
d
wi
t
h
h
o
l
d
i
n
g
am
o
u
n
t
s
ca
n
al
s
o
be
su
m
m
a
r
i
z
e
d
,
d
i
s
b
u
r
s
e
d
to
th
e
p
r
o
p
e
r
p
a
r
t
i
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s
an
d
re
c
o
r
d
e
d
in
th
e
ap
p
l
i
c
a
b
l
e
Go
v
e
r
n
m
e
n
t
a
l
o
r
P
r
o
p
r
i
e
t
a
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y
F
u
n
d
re
c
o
r
d
s
.
A
AD
N
Ti
t
l
e
P
HI
O
No
.
Tot
a
l
Th
i
s
pa
g
e
D
A
AD
N
xx
x
x
x
x
x
F/
W
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W
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M
HI
O
xx
x
x
x
x
x
To
t
al
-
Pr
e
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o
u
s
Pa
g
e
Ca
r
r
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e
d
Fo
r
w
a
r
d
D
G
xx
x
x
x
x
x
RC
L
A
AD
N
xx
xx
x
x
x
F/
W
S/
W
SS
M
HI
O
xx
x
x
x
x
x
To
t
a
l
Ca
r
r
i
e
d
Fo
r
w
a
r
d
to
Ne
x
t
Pa
g
e
or
Gr
a
n
d
To
t
a
l
s
D
G
xx
x
x
x
x
x
RC
L
A
AD
N
xx
xx
x
x
x
F/
W
S/
W
SS
M
HI
O
Xx
x
x
x
x
x
Ce
r
t
i
f
i
c
a
t
i
o
n
of
De
p
a
r
t
m
e
n
t
He
a
d
(o
r
ot
h
e
r
au
t
h
o
r
i
z
e
d
pe
r
s
o
n
n
e
l
)
:
I
he
r
e
b
y
ce
r
t
i
f
y
th
a
t
th
e
pe
r
s
o
n
s
na
m
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d
in
th
i
s
pa
y
r
o
l
l
ar
e
em
p
l
o
y
e
d
so
l
e
l
y
in
an
d
ha
v
e
ac
t
u
a
l
l
y
pe
r
f
o
r
m
e
d
th
e
pr
o
p
e
r
du
t
i
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s
of
po
s
i
t
i
o
n
s
an
d
em
p
l
o
y
m
e
n
t
s
in
d
i
c
a
t
e
d
.
D
a
t
e
Si
g
n
a
t
u
r
e
Ti
t
l
e
Ce
r
t
i
f
i
c
a
t
i
o
n
of
Ci
v
i
l
Se
r
v
i
c
e
Co
m
m
i
s
s
i
o
n
.
I
ce
r
t
i
f
y
th
a
t
,
wi
t
h
th
e
ex
c
e
p
t
i
o
n
s
as
sh
o
w
n
,
th
e
em
p
l
o
y
e
e
s
na
m
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d
in
th
i
s
pa
y
r
o
l
l
,
co
n
t
a
i
n
i
n
g
na
m
e
s
,
ha
v
e
ap
p
o
i
n
t
e
d
or
pr
o
m
o
t
e
d
or
em
p
l
o
y
e
d
in
th
e
po
s
i
t
i
o
n
s
an
d
pl
a
c
e
s
an
d
at
th
e
ra
t
e
s
of
sh
o
w
n
,
in
ac
c
o
r
d
a
n
c
e
wi
t
h
th
e
Ci
v
i
l
Se
r
v
i
c
e
La
w
an
d
Ru
l
e
s
ma
d
e
in
pu
r
s
u
a
n
c
e
th
e
r
e
o
f
,
an
d
ce
r
t
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th
r
o
u
g
h
un
l
e
s
s
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r
w
i
s
e
no
t
e
d
.
Bu
t
wh
e
n
an
y
pe
r
s
o
n
wh
o
s
e
ap
p
e
a
r
s
on
th
e
pa
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o
l
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sh
a
l
l
ha
v
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be
e
n
se
p
a
r
a
t
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d
fr
o
m
th
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se
r
v
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c
e
or
if
st
a
t
u
s
sh
a
l
l
ch
a
n
g
e
in
wa
y
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th
i
s
ce
r
t
i
f
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c
a
t
e
sh
a
l
l
ap
p
l
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to
th
a
t
pe
r
s
o
n
on
l
y
up
to
th
e
ti
m
e
su
c
h
se
p
a
r
a
t
i
o
n
or
ch
a
n
g
e
ha
v
e
ta
k
e
n
pl
a
c
e
.
Da
t
e
Si
g
n
a
t
u
r
e
Ti
t
l
e
69
Exhibit B - Payroll Distribution Form
PAYROLL DISTRIBUTION FORM
D5110.1 Maintenance of Streets $
D5112.1 Permanent Improvements Highway
Total -Repairs and Improvements $
D5120.1 Maintenance of Bridges $
D5130.1 Machinery $
D5140.1 Brush and Weeds $
D5142.1 Snow Removal
D5148.1 Services,Other Governments
Total -Snow and Miscellaneous $
Total -Highway Fund $
A5010.1 Highway Superintendent $
Total -General Fund $
TOTAL -PAYROLL $
70
Exhibit C - Employee Earnings Record
EM
P
L
O
Y
E
E
E
A
R
N
I
N
G
S
R
E
C
O
R
D
Em
p
l
o
y
e
e
Na
m
e
Ti
t
l
e
TH
I
S
SP
A
C
E
MA
Y
BE
US
E
D
TO
RE
C
O
R
D
AU
T
H
O
R
I
Z
A
T
I
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N
S
AN
D
CA
N
C
E
L
L
A
T
I
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S
OF
PA
Y
R
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L
L
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D
U
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I
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S
AN
D
/
O
R
TO
AC
C
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U
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T
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R
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C
A
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A
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.
Ex
e
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y
No
t
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f
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y
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r
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o
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s
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r
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t
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e
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n
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b
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t
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a
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p
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y
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s
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r
e
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r
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y
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e
n
t
s
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d
e
r
a
l
W/
T
a
x
NY
S
W/
T
a
x
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c
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c
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a
x
Me
d
i
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a
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a
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In
s
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s
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a
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e
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r
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d
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c
t
i
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n
s
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t
Pa
y
Am
o
u
n
t
71
Exhibit D - Projected Cash Flow Statement
GE
N
E
R
A
L
F
U
N
D
PR
O
J
E
C
T
E
D
C
A
S
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Fo
r
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h
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e
a
r
end
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n
g
,
ES
T
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D
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S
JA
N
.
FE
B
.
MA
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.
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.
NO
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.
DE
C
.
TO
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3
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7
5
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n
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28
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60
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97
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72
Exhibit E - Record of Investments
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73
Exhibit F - List of Unpaid Obligations
TOWN OF
ADMINISTRATIVE UNIT
LIST OF UNPAID OBLIGATIONS
TO: TOWN SUPERVISOR
The following is a list of all unpaid obligations of this administrative unit as of December 31,20 .
Appropriation
Code No.P.O.#
(If Any)Vendor or Description Date
Received
Amount or
Estimated
Amount
(For Fiscal
Officer’s Use
Only)
DEPARTMENT HEAD OR REPRESENTATIVE
I certify that the above list is complete.
Signed
Title
SUPERVISOR
Except as otherwise indicated, appropriation
accounts have been encumbered for the
above obligations.
Signed
Date Date
74
Exhibit G - Claim Voucher
(Print Name and Address of Municipality in this Space)
CLAIM VOUCHER
DEPARTMENT
CLAIMANT NAME
AND
ADDRESS
TERMS Vendor's Ref. No.
Dates Quantity Description of Material or Services Unit Price Amount
CLAIMANT CERTIFICATION (Optional)
I,, certify that the above amount of $
is true and correct; that the items, services and disbursements charged were rendered to
or for the municipality on the dates stated; that no part has been paid or satisfied; that
taxes, from which the municipality is exempt, are not included, and that the amount
claimed is actually due.
DATE SIGNATURE
(Space Below for Municipal Use)
TITLE
DEPARTMENT APPROVAL
The above services or materials were rendered or furnished to the
municipality on the above dates stated and the charges are correct.
AUTHORIZED OFFICIAL
APPROVAL FOR PAYMENT (Optional)
This claim is approved and ordered paid from the appropriations indicated
above.
AUDITING AUTHORITY
Purchase Order No.
DO NOT WRITE IN THIS BOX
Date Voucher Received:
FUND -APPROPRIATION AMOUNT
VO
U
C
H
E
R
NO
.
75
Voucher Instructions
DEPARTMENT OR AGENCY - Indicate the department that received the services or supplies.
Send one copy of the voucher properly completed to that department. Use a separate voucher for
charges against each department.
CLAIMANT NAME AND ADDRESS - All claimants must print or type their name and address in the
space provided for the purpose. The check will be drawn in that name and mailed to that address.
TERMS - Show any discounts that are allowed for prompt payment.
PURCHASE ORDER NO. - If the vendor requires a reference number, in order to identify the check
in payment of this voucher, show such number.
DESCRIPTION OF MATERIALS OR SERVICES - All charges must be itemized. In the space
provided in the body of the voucher, show where applicable: (1) dates of service or delivery; (2)
quantities; (3) description of charges; (4) unit price; and (5) amount. If more space is required than is
provided any sheet of paper this size may be used. Bring the total forward to this voucher.
Any company that has its own invoice or bill form may refer to it by number or other identification in
the body of the voucher and show the total in the amount column. Attach the form to this voucher.
CLAIMANT CERTIFICATION [Optional]- The claimant’s certification, if required, must be
completed. The date on which the signature is affixed must be given. The title of the person signing
must clearly indicate his relationship to the client, e.g., sole owner, partner, treasurer, bookkeeper,
billing clerk, etc. Notary not required.
DELIVERY RECEIPTS - Where applicable attach delivery slips signed by the municipal employee
receiving the materials.
RETURN VOUCHER PROMPTLY - In order to expedite payment this voucher should be returned
promptly after the services have been rendered or the materials have been furnished.
76
Exhibit H - Abstract
78 Information for Town Officials 76 Information for Town Officials 78 Information for Town Officials
ABSTRACT
Town of ___________________________________
No. _
Page
FUND ___________________________________________
Appropriation Encumbrance
Voucher
No.
Claimant
Name and Address Account Amount 9
Amount
of
Check Number
Amount
Liquidated
Check
No. 9
Summary of Accounts
Acct.
Code
Amount
to Be
Charged Totals
(1) Totals
To the Supervisor:
I certify that the vouchers listed above were audited by the ____________________________________ on (Town Board or Town Comptroller)
_________________________________ and allowed to the claimants the amount opposite his/her name.
(Date)
Date Town Clerk or Town Comptroller
EXHIBIT H
Note: There is no requirement that the Town Clerk or Town Comptroller sign the abstract
“certifying” that the vouchers listed were audited and approved for payment. However, many
local governments have used this type of abstract and certification format and find the process
to be reasonable and appropriate.
77
Division of Local Government
and School Accountability
110 State Street, 12th Floor, Albany, NY 12236
Tel: 518.474.4037 • Fax: 518.486.6479
Email: localgov@osc.ny.gov
www.osc.ny.gov/local-government
Technical Assistance is available at any of our Regional Offices
BINGHAMTON REGIONAL OFFICE
Tel 607.721.8306 • Fax 607.721.8313 • Email Muni-Binghamton@osc.ny.gov
Counties: Broome, Chemung, Chenango, Cortland, Delaware, Otsego, Schoharie, Tioga, Tompkins
BUFFALO REGIONAL OFFICE
Tel 716.847.3647 • Fax 716.847.3643 • Email Muni-Buffalo@osc.ny.gov
Counties: Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Niagara, Orleans, Wyoming
GLENS FALLS REGIONAL OFFICE
Tel 518.793.0057 • Fax 518.793.5797 • Email Muni-GlensFalls@osc.ny.gov
Counties: Albany, Clinton, Columbia, Essex, Franklin, Fulton, Greene, Hamilton, Montgomery,
Rensselaer, Saratoga, Schenectady, Warren, Washington
HAUPPAUGE REGIONAL OFFICE
Tel 631.952.6534 • Fax 631.952.6530 • Email Muni-Hauppauge@osc.ny.gov
Counties: Nassau, Suffolk
NEWBURGH REGIONAL OFFICE
Tel 845.567.0858 • Fax 845.567.0080 • Email Muni-Newburgh@osc.ny.gov
Counties: Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster, Westchester
ROCHESTER REGIONAL OFFICE
Tel 585.454.2460 • Fax 585.454.3545 • Email Muni-Rochester@osc.ny.gov
Counties: Cayuga, Livingston, Monroe, Ontario, Schuyler, Seneca, Steuben, Wayne, Yates
SYRACUSE REGIONAL OFFICE
Tel 315.428.4192 • Fax 315.426.2119 • Email Muni-Syracuse@osc.ny.gov
Counties: Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, St. Lawrence
STATEWIDE AUDIT
Tel 607.721.8306 • Fax 607.721.8313 • Email Muni-Statewide@osc.ny.gov
Andrea C. Miller Executive Deputy Comptroller
Executive • 518.474.4037
Simonia Brown, Assistant Comptroller
Randy Partridge, Assistant Comptroller
Audits, Local Government Services and
Professional Standards • 518.474.5404
(Audits, Technical Assistance, Accounting and Audit Standards)
Local Government and School Accountability
Help Line • 866.321.8503 or 518.408.4934
(Electronic Filing, Financial Reporting, Justice Courts, Training)
Division of Legal Services
Municipal Law Section • 518.474.5586
New York State & Local Retirement System
Retirement Information Services
Inquiries on Employee Benefits and Programs
518.474.7736
BUFFALO
BINGHAMTON
ROCHESTER
SYRACUSE GLENS FALLS
NEWBURGH
HAUPPAUGE
osc.ny.gov
Contacts
Contact
Office of the New York State Comptroller
Division of Local Government and School Accountability
110 State Street, 12th floor
Albany, NY 12236
Tel: (518) 474-4037
Fax: (518) 486-6479
or email us: localgov@osc.ny.gov
www.osc.ny.gov/local-government